Sweat equity shares: detailed disclosure in meeting notice and separate shareholder approval requirements for significant grants in unlisted companies. Rule 4 requires that the explanatory statement for a special resolution under section 79A(1)(a) include: the board meeting date approving the sweat equity proposal; reasons for the issue; number, consideration and classes of recipients; value of shares with valuation report or basis and issue price; names and relationships of recipients; any ceiling on managerial remuneration affected; a statement of conformity with Central Government specified accounting policies; and diluted earnings per share calculated per the Accounting Standards. A separate shareholders' resolution is required for significant grants to identified employees and promoters.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Sweat equity shares: detailed disclosure in meeting notice and separate shareholder approval requirements for significant grants in unlisted companies.
Rule 4 requires that the explanatory statement for a special resolution under section 79A(1)(a) include: the board meeting date approving the sweat equity proposal; reasons for the issue; number, consideration and classes of recipients; value of shares with valuation report or basis and issue price; names and relationships of recipients; any ceiling on managerial remuneration affected; a statement of conformity with Central Government specified accounting policies; and diluted earnings per share calculated per the Accounting Standards. A separate shareholders' resolution is required for significant grants to identified employees and promoters.
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