At this page, you can define the main shareholder of a division in order to generate the consolidation structure which can be displayed at Financial/Reports/Financial consolidation/Consolidation structure. At any point in time, you can only define one main shareholder for a division. A main shareholder may not necessarily be the one which owns the largest stake in the division but it could be a small shareholder with dominant control over the division.
Go to Financial/Setup/Organization/Divisions or HRM/Setup/Organization/Divisions. Display the overview of divisions, and click a division to open the division card. Under the Monitor section, click Shareholders. Next, click the Main: Shareholder tab, and then click Change.
To define the main shareholder, function right 62 – Maintain subsidiaries and shareholders is required. Users with the General manager and Controller roles have this function right.
For more details on what you can do with function rights or levels, go to System/Setup/Security/Function rights, select the required module, and then click on the relevant ID. To find out the functions you can perform with a particular role, go to System/Setup/Security/Roles, type in the description, click Refresh, and then click the required link under the Role column.
Click this to save the main shareholder record.
Click this to exit.
This displays the division which you will define the main shareholder for. It is also the division you have selected in the overview of divisions to view the division card. To view the division card again, click the division link.
Select the effective year to define when the shareholder becomes the main shareholder of the division. By default, the effective years available for selection are the financial years you have generated for the division in the system. Next, type the effective period for the shareholder to become the main shareholder of the division.
Note: If you want to change the main shareholder, the effective year/period for the new main shareholder must not be earlier than the effective year/period of the previous main shareholder. Meanwhile, if only one shareholder is linked to the division, the system will create a record for this shareholder to become the main shareholder. The effective year/period for this main shareholder record is based on the share purchase transaction date of that shareholder.
Select the shareholder, which will be the main shareholder of the division effective from the year and period defined at Effective from: Year / Period. The available options for shareholders is dependent on the shareholders which you have registered their shares purchase transactions. For more information, see Registering Shares Purchased or Disposed by Shareholder.
Note: In order to select a shareholder to become the main shareholder, you should first map the periods of the division to the reporting entity. If the shareholder is not a reporting entity, the division and shareholder should be mapped to a common reporting entity. For more information, see Mapping Periods. Meanwhile, if there is only one shareholder in the division, the shareholder will automatically become the main shareholder of the division. In another scenario where a main shareholder has already been defined and the shares transaction record(s) between this main shareholder and the child division are all deleted subsequently, you will see that this shareholder is still shown as the main shareholder. For more information, see Overview of Share Capital Transactions and Linked Shareholders. In this example, you may want to select another shareholder to be the main shareholder.