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Sweat equity shares

Corporate & Other Laws

I am not able to differ between sweat equity shares and right issues.....

abhishek kapale

CA Inter

★ 980

21-Jul-20 15:59

334

Answers (1)

Best Answer

Sec.2(88): "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 rights or value additions, by whatever name called. Sec.â??Right Issueâ?? means offering SHARES to EXISTING MEMBERS IN PROPORTION to their existing share holding. The object is to ensure equitable distribution of Shares and the proportion of voting rights is not affected by issue of Fresh shares.