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according to Section 53 of the Companies Act 2013 the company cannot issue the shares at discount except in case of an issue of sweat equity shares. Doubt is Can anyone explain me what is the meaning of sweat equity shares with any understanding examples.
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Sweat Equity refers to the contribution made by owners and employees towards the company in consideration other than cash. It is beneficial for start-ups company. For example, lets take a partnership firm where some members contribute in the form of cash, and others contribute their time and efforts towards the common objective of the firm.
Thread Starter
Balachandar SThat sweat equity shares applicable to partnership also.
No.Only companies can issue shares. Example for sweat equity shares: The shares issued to employees, directors in consideration for providing their skills, efforts,etc at a less price than face value of a share.
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