ESOS new scheme

This query is : Resolved

CS Snehal (Querist)
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18 August 2010 Dear All,

Please guide,
The Company is granting new options to the employees. the respective shareholders resolution is taken no wfor the grant of the options till the inprinciple approval what are the steps to be taken?

Thanks.

Ankur Garg

Ankur Garg (Expert)
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18 August 2010 Pleas ans the following qus to proceed further:

1. Is this the first grant under ESOP scheme
2. Have you got the In-principle from STX.

What i dont understand is---the respective shareholders resolution is taken "now" for the grant of the options "till" the in-principle approval.

CS Snehal

CS Snehal (Querist)
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18 August 2010 Dear Ankur,

This is not the 1st grant. My point was :

Shareholders resolution is taken in the AGM.

The steps post that shall be
Hold compensation committee meeting
Inform the SE about the same
Take certificates from Merchant Banker and Auditors
Apply for inprinciple approval
receive the approval from the stock exchange
vesting of options

Now my point is: As per clause 25 of the listing agreement it says that options granted shall be reported to the SE promptly.

What if the Company has made a delay (more than a month) in informing the SE about the Compensation Committee meeting what will be the consequences of that.

Please clarify... Thanks

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Ankur Garg

Ankur Garg (Expert)
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18 August 2010 Treat old CC meeting as a general working meeting and hold a new CC meeting for grant purpose and inform the SE accordingly.

For general working meeting no need to intimate SE. What say...advise further...