Shareholder approval required for employee share schemes; separate resolutions for secondary acquisitions and large grants. Shareholders must approve any share based employee benefit scheme by passing a special resolution, with the explanatory statement containing SEBI specified information. A separate shareholders' resolution is required for secondary acquisition for implementation, trust secondary acquisition to preserve the five per cent. cap after capital expansion, grants to subsidiary or holding company employees, and grants in a year to identified employees equal to or exceeding one per cent. of issued capital.
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.
Shareholder approval required for employee share schemes; separate resolutions for secondary acquisitions and large grants.
Shareholders must approve any share based employee benefit scheme by passing a special resolution, with the explanatory statement containing SEBI specified information. A separate shareholders' resolution is required for secondary acquisition for implementation, trust secondary acquisition to preserve the five per cent. cap after capital expansion, grants to subsidiary or holding company employees, and grants in a year to identified employees equal to or exceeding one per cent. of issued capital.
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