The user needs a way to communicate the code to the system. This usually consists of:
The Simple Facility Of Redemption Script can be configured to suit your specific needs.
In the world of corporate finance and cap table management, few phrases cause as much confusion—and as much relief when automated—as the Facility of Redemption. Simple Facility Of Redemption Script
A Facility of Redemption is a contractual mechanism that allows a company to repurchase its own shares from shareholders, typically at a predetermined price or formula. It is common in venture-backed startups, private equity deals, and mature private corporations where liquidity events are rare.
However, managing this manually leads to spreadsheet nightmares, human error, and compliance risks. The user needs a way to communicate the code to the system
Enter the Simple Facility of Redemption Script—a piece of automated code (usually Python, SQL, or VBA) that calculates redemption prices, tracks shareholder elections, and executes buybacks without manual intervention.
In this article, we will break down what this script does, why you need it, how to build a simple version, and the legal guardrails required to use it safely. If your server is in UTC but your
If your server is in UTC but your investor is in Tokyo, the cut-off time shifts. Solution: Store all datetimes in UTC. Convert user local time to UTC before applying the cut-off logic.
If your script uses timedelta(days=1) but tomorrow is Christmas, the settlement fails. Solution: Integrate a business holiday calendar API (like pandas_market_calendars).
Connect to services like Carta, Shareworks, or Pulley to automatically update the official cap table.