Lawgist54Issues of sweat equity share
(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;
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(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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1. Clause (c) omitted by s. 13, ibid. (w.e.f. 7-5-2018).
- 43 Kinds of share capital
- 44 Nature of shares or debentures
- 45 Numbering of share
- 46 Certificate of shares
- 47 Voting right
- 48 Variation of shareholders‘ right
- 49 Calls on shares of same class to be made on uniform basis
- 50 Company to accept unpaid share capital, although not called up
- 51 Payment of dividend in proportion to amount paid-u
- 52 Application of premiums received on issue of shares
- 53 Prohibition on issue of shares at discount
- 54 Issues of sweat equity share
- 55 Issue and redemption of preference shares
- 56 Transfer and transmission of securities
- 57 Punishment for personation of shareholder
- 58 Refusal of registration and appeal against refusal
- 59 Rectification of register of members
- 60 Publication of authorised, subscribed and paid-up capital
- 61 Power of limited company to alter its share capital
- 62 Further issue of share capital
- 63 Issue of bonus share
- 64 Notice to be given to Registrar for alteration of share capital
- 65 Unlimited company to provide for reserve share capital on conversion into limited company
- 66 Reduction of share capital
- 67 Restrictions on purchase by company or giving of loans by it for purchase of its shares
- 68 Power of company to purchase its own securities
- 69 Transfer of certain sums to capital redemption reserve account
- 70 Prohibition for buy-back in certain circumstances
- 71 Debenture
- 72 Power to nominate
