Eligibility for employee stock options restricts promoters and directors with substantial shareholding from participating in ESOS. Employees are generally eligible to participate in ESOS, but promoters and promoter group members are excluded, and directors holding a substantial shareholding directly or indirectly are ineligible. For institutionally nominated directors, the nomination contract must specify whether options may be accepted, prohibit renunciation of options to the nominating institution, and set conditions for acceptance of incentives; the institution must file the contract with the company, the company must file it with its stock exchanges, and the director must furnish a copy at the first board meeting attended after nomination.
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.
Eligibility for employee stock options restricts promoters and directors with substantial shareholding from participating in ESOS.
Employees are generally eligible to participate in ESOS, but promoters and promoter group members are excluded, and directors holding a substantial shareholding directly or indirectly are ineligible. For institutionally nominated directors, the nomination contract must specify whether options may be accepted, prohibit renunciation of options to the nominating institution, and set conditions for acceptance of incentives; the institution must file the contract with the company, the company must file it with its stock exchanges, and the director must furnish a copy at the first board meeting attended after nomination.
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