16 February 2010
can a unlisted private company issue the shares to the consultant of the company under ESOP Scheme? If the company has covered the consultant in the defination of Employee and mentioned the same in the Trust Deed.
Sec 2(15A) says employee stock option means the option given to whole-time directors, officers or employees of a company, which gives such directors, officers or employees the benefit or right to purchase or subscribe at a future date the securities offered by the company at a pre-determined price.
20 February 2010
I believe consultants cannot be covered under the esop. consultants are like professionals who raise monthly / periodic invoice for their professional fees.
Giving advance to trust to purchase its own shares is also not allowed. It would be deemed that the company is buying its own shares.
CAclubindia
