For the issue of sweat equity shares to theemployeesordirectors, thespecial resolutionneeds to be passed at the Annual General Meeting (AGM). However, when the sweat equity shares are issued topromoters, anordinary resolutionis required to be passed at the AGM The resolution must state the numb...
Shares may be issued at a discount to directors and employees to retain talent, while performance shares are awarded if certain specified measures are met, such as anearnings per share(EPS) target,return on equity(ROE), or the total return of the company's stock in relation to an index. ...
(d) where the equity shares of the company are listed on a recognised stock exchange, the sweat equity shares are issued in accordance with the regulations made by the Securities and Exchange Board in this behalf and if they are not so listed, the sweat equity shares are issued in accordanc...
The term originated from value-enhancing improvements generated from the sweat of one's brow. Now there are various regulations on the number and time limit for issue of sweat equity shares.
. The company will need to increase the issued capital by the same amount on the equity side. The common stock will need to be credited with the par value of sweat equity shares and paid-in capital with the difference between the current value and the par value of sweat equity shares....
shares to allocate to the person performing the sweat equity. For example, if the company is worth $150,000 and it has issued 10,000 shares, then each share is worth $15. If the person who performed the sweat equity delivered work worth $30,000, the person should be paid 2,000 ...