Shareholder approval for employee stock schemes required by special resolution; explanatory disclosure and separate approvals mandated. No employee stock option or purchase scheme may be offered unless shareholders approve a special resolution. The explanatory statement must specify the share price, number of shares offered to each employee, the appraisal process for eligibility, and the total number of shares to be issued. Share counts may differ by employee category and the resolution must state conformity with the prescribed accounting policies. Separate shareholder resolutions are required for allotments to subsidiary/holding company employees and where yearly allotments to identified employees meet the specified capital threshold.
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 for employee stock schemes required by special resolution; explanatory disclosure and separate approvals mandated.
No employee stock option or purchase scheme may be offered unless shareholders approve a special resolution. The explanatory statement must specify the share price, number of shares offered to each employee, the appraisal process for eligibility, and the total number of shares to be issued. Share counts may differ by employee category and the resolution must state conformity with the prescribed accounting policies. Separate shareholder resolutions are required for allotments to subsidiary/holding company employees and where yearly allotments to identified employees meet the specified capital threshold.
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