Flexible Voting Rights – User Guide

This feature improves how you manage shares with manual (flexible) voting rights in the Entities module (LEM).

You can now:

• ✅ Perform split and merge operations on shares with flexible voting rights
• ✅ Disable manual voting rights when no manual adjustment has been applied
• ⚠️ Prevent operations that would result in negative or incompatible voting rights

✨ What’s New?

Previously, when manual adjustment of voting rights was enabled on a share, no capital operation (such as split or merge) was allowed — even when it technically should have been.

This update makes the system more flexible and user-friendly.

What has improved?

• ✅ You can now perform split operations on shares with flexible voting rights
• ✅ You can now perform merge operations on those shares
• ✅ You can disable manual voting rights if no manual adjustment has been entered
• ⚠️ The system blocks operations that would create negative or inconsistent voting rights

✍ How to Perform a Split or Merge on Flexible Voting Rights

Step 1️⃣ – Go to the Entity

Navigate to the relevant entity in the LEM module.

Step 2️⃣ – Access the Shares

Open the capital structure and locate the share with manual voting rights enabled.

Step 3️⃣ – Launch the Operation

Select the desired capital operation:

• Split
• Merge

The system will now allow these operations — even if manual voting rights are enabled.

Step 4️⃣ – System Validation

Before confirming the operation, the system automatically checks:

• ❌ That the resulting voting rights are not negative
• ❌ That the voting rights remain logically compatible

If everything is valid, the operation proceeds normally.

❌ Error Message – Incompatible Voting Rights

If the operation would result in inconsistent or negative voting rights, the transaction is blocked.

You will see the following message:

English:
Impossible transaction. The voting rights resulting from this operation are incompatible.

This prevents incorrect capital structures and ensures data accuracy.

What should you do?

• ✋ Review the voting rights configuration
• ✏️ Adjust the manual voting rights if needed
• ? Retry the operation once the structure is valid

☝ Disabling Manual Voting Rights

You can now disable manual voting rights under one important condition:

• ✅ No manual adjustment has been entered on the share

If no custom voting value was applied, simply edit the share and uncheck the manual voting rights option.

This gives you flexibility to return to standard share behavior.

Important:
If manual adjustments were already applied, you must first correct or reset them before disabling the feature.

⭐ Benefits of This Improvement

• More flexibility in capital operations
• Cleaner management of voting rights
• Reduced operational blockers
• Improved data integrity through automatic validation

❓ Limitations & Safeguards

• ❌ The system does not allow negative voting rights after an operation
• ❌ Incompatible voting configurations are automatically blocked
• ⚠️ Manual voting rights cannot be disabled if adjustments exist

These safeguards ensure legal and structural consistency of your capital data.

⌛ Best Practices

• ✔️ Always review voting rights before performing capital operations
• ✔️ Disable manual voting rights when no longer needed
• ✔️ Double-check results before final confirmation

This feature is designed to give you flexibility while keeping your capital structure compliant and accurate.