Restriction on sweat equity issuance requires prior government approval when annual issuance exceeds prescribed percentage or monetary threshold. A company shall not in a year issue sweat equity shares exceeding fifteen percent of its total paid-up equity share capital or shares of a specified monetary value without prior Central Government approval; the rule sets both a proportional cap and a monetary threshold and requires governmental authorization where either limit would be exceeded.
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.
Restriction on sweat equity issuance requires prior government approval when annual issuance exceeds prescribed percentage or monetary threshold.
A company shall not in a year issue sweat equity shares exceeding fifteen percent of its total paid-up equity share capital or shares of a specified monetary value without prior Central Government approval; the rule sets both a proportional cap and a monetary threshold and requires governmental authorization where either limit would be exceeded.
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