A Company wants to provide financial assistence to its employees to enable them to subscribe for fully paid shares of the company
Does it amounts to purchase of its own shares??
2 Replies
prakash
(Company Secretary)
(1352 Points)
Replied 23 September 2015
Manu,
It is not considered as buy back of shares but what is point in lending companies money to employees to purchase its own shares, general company issues shares to raise money, when there is no money in company for business operations. if company proposes to make employees part of company by issuing shares, it can do it so by following employee stock option scheme or sweat equity scheme.
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