Section 54 of CA 2013 : Section 54: Issues Of Sweat Equity Shares

CA 2013

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Explanation using Example

Imagine a tech startup, "InnovTech Pvt. Ltd.", which has been operational for a few years. The company has a dedicated team of employees who have worked tirelessly to develop a revolutionary software product. The directors of InnovTech want to reward these employees for their hard work and dedication that has significantly contributed to the value of the company.

To do so, they decide to issue sweat equity shares to their employees. Before they can proceed, they must fulfill certain conditions:

  • The board calls a...

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