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 Issue of sweat equity shares

 (1) Notwithstanding anything contained in section 53, a company may issue sweat equity shares of a class of shares already issued, if the following conditions are fulfilled, namely:—

(a)   the issue is authorised by a special resolution passed by the company;
(b)   the resolution specifies the number of shares, the current market price, consideration, if any, and the class or classes of directors or employees to whom such equity shares are to be issued;
(c)   [***]
(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 accordance with such rules as may be prescribed.

 

(2) The rights, limitations, restrictions and provisions as are for the time being applicable to equity shares shall be applicable to the sweat equity shares issued under this section and the holders of such shares shall rank pari passu with other equity shareholders.

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Digital Signature

A Digital Signature is the equivalent of a physical signature in electronic format, as it establishes the identity of the... Read more

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A syndicated loan is a loan made by a group of lenders who share or participate in a specific loan given to... Read more

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Latest News

New Tax Rates
New Tax Rates

The Reserve Bank of India will shortly issue Rs. 2000 denomination banknotes in the Mahatma Gandhi (New) Series, with

Defending Your Client
Defending Your Client

The Reserve Bank of India will shortly issue Rs. 2000 denomination banknotes in the Mahatma Gandhi (New) Series, with

Issue of Rs. 2000 banknotes
Issue of Rs. 2000 banknotes

The Reserve Bank of India will shortly issue Rs. 2000 denomination banknotes in the Mahatma Gandhi (New) Series, with

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