Rule 701 Disclosure

With the Rule 701 Disclosure feature, you can send disclosures to holders through Carta. They can accept and review the documents in their Carta account. 

1. To upload the Rule 701 Disclosure, navigate to "Compliance" > "Rule 701 disclosures." Select "Upload Disclosure" to download the spreadsheet with your current Equity Award holders.


2. Add the filename that you want to disclose to each security. Be sure to include ".pdf" in the

The disclosures must be in PDF format. Send the completed spreadsheet to Carta to distribute.


How does Carta secure the Rule 701 Disclosure?

The disclosures are watermarked "Confidential" with the holder's name and email address. Once watermarked the PDF is encrypted which prevents modifications, copying text, and downloading or printing the file.

Who can see the Rule 701 Disclosure feature? 

The company administrator chooses which stakeholders should have access to the disclosure by filling out the spreadsheet. When the file is uploaded, a task will be created notifying the holder it’s available when they log into Carta account. The administrator can let Carta know whether they would prefer email notifications to be sent to those stakeholders on the spreadsheet or not. The holder will receive a task to accept the document. Once accepted, the disclosure can be found in the holder's portfolio under "Holdings" > "Documents".