Bonus issue to employee member of private company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 Please guide if a private company going in for DVR for cash and premium - can utilise the premium only for one member for issue of bonus shares.
at the time of the issue of bonus, will it be considered as sweat thereby applying the sweat guidelines?

VISHRUT

VISHRUT (Expert)
Follow

09 September 2011 For issue of bonus shares by private limited company it must be in the same ratio as accordingly original share holding by the member otherwise it will be considered as sweat equity and you have to complied guidelines in relation with the same.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 can a private company first issue shares as DVR to one employee and then retain the premium for issue of bonus/ esop / sweat.

which procedure would be least cumbersom - considering bonus is not covered in articles , the company has the power to issue dvr and further issue.

in this case if the company goes for esop is only board resolution sufficient.

Upgrade to CAclubindia Pro. Subscribe Now!