Hi,
Directors Salaries converting to Sweat equity shares, my question is how many months or years directors has to work in the Private company for converting the salaries to sweat equity shares?????
Awaiting for your kind replies......
vijaya kumar n (JOB) (488 Points)
08 April 2011Hi,
Directors Salaries converting to Sweat equity shares, my question is how many months or years directors has to work in the Private company for converting the salaries to sweat equity shares?????
Awaiting for your kind replies......
Shriram Ramachandran
(IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd)
(492 Points)
Replied 08 April 2011
There is no such criteria that a director has to work for this much years. There some criteria there are:
(a) such issue is authorised by a special resolution of the company in the general meeting;
(b) such resolution specifies the number of shares, current market price, consideration, if any, and the class or classes of the directors or employees to whom such shares are to be issued;
(c) such issue is after expiry of one year from the date on which the company was entitled to commence business; and
(d) in the case of an unlisted company, such shares are issued in accordance with the prescribed guidelines.
Thanks
R Shriram
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