Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 Chapter II SCHEMES-IMPLEMENTATION AND PROCESS
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Shareholders' approval required for employee benefit schemes; separate resolutions mandated for secondary acquisitions and cross-entity grants. Shareholders must approve any employee benefit or sweat equity scheme by passing a special resolution, and the explanatory statement and proposed resolution must contain information specified in Part C of Schedule I or as directed by the Board. A separate shareholder resolution is required for specified situations: secondary acquisitions for scheme implementation (with the permissible percentage stated), trust secondary acquisition after capital expansion to maintain the trust cap, grants to subsidiary or holding company employees, and grants to identified employees in any year that meet or exceed the regulatory threshold 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.
Shareholders' approval required for employee benefit schemes; separate resolutions mandated for secondary acquisitions and cross-entity grants.
Shareholders must approve any employee benefit or sweat equity scheme by passing a special resolution, and the explanatory statement and proposed resolution must contain information specified in Part C of Schedule I or as directed by the Board. A separate shareholder resolution is required for specified situations: secondary acquisitions for scheme implementation (with the permissible percentage stated), trust secondary acquisition after capital expansion to maintain the trust cap, grants to subsidiary or holding company employees, and grants to identified employees in any year that meet or exceed the regulatory threshold of issued capital.
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