Chapter IV(Sections43–72) of the Companies Act, 2013 (CA 2013) deals with the provisions related to share capital and debentures. Section 54 of CA 2013 provides for issue of sweat equity shares. Recently, we have discussed in detailsection 53(Prohibition on issue of shares at discount) of...
sweat equity shares are actual shares that get vested to the employee directly. In the case of ESOP, the employee has to first exercise the option to get the share. ESOP has value if the share’s current price is more than the exercise price of the option. A sweat equity share always ...
Sweat equity shares means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property