Can a private company offer shares under Employees Stock Purchase Scheme?
Can a private company offer shares under Employees Stock Purchase Scheme?
Chiranjibi Aug. 09, 2018
In India the unlisted company cannot issue sweat equity shares (shares under ESOP) for more than 15% of total paid up equity share capital in a year or shares of the value of 5 crores of rupees, whichever is higher except with the prior approval of the Central Government.
Sweat equity shares issued to employees or directors shall be locked in for a period of three years from the date of allotment.
The price of sweat equity shares (shares under ESOP or such Plans) to be issued to employees and directors shall be at a fair price calculated by an independent valuer.
