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Q. > Please Help: Company Law-Sweat Equity Shares
Sweat equity shares are equity shares issued by a company to its employees or directors at a discount, or as a consideration for providing know-how or a similar value to the company. Plz interprete the above..Whether it's compulsory to issue these shares at discounted rate..Above line don't say the same...
1 Answers
answered Sep 10, 2012 by SHIKHA SONI
yes it is compulsory to issue at a discounted rate because issue of sweat equity shares is authorised by a special resolution
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Shubham jain
11-Sep-2012 , 02:47:09 pmHello Rakhi, it is not mandatory to issue this type of share at concessional rates, it can be issued at normal mv but,whenever you issue this some share to your employee then is become benifit for the company & the employee of working in the enterprices