Sweat Equity Shares
29 Sept 2010, 09:45
Are there any differences between the rights and liabilities of those shareholders holding sweat equity share, and those holding normal equity shares? Besides, the fact that sweat equity shares are issued at a discount, or for other consideration, is there any difference between sweat equity and normal equity shares? Any insight on this point will be appreciated. Thanks
5 Replies
hi
see basically sweat equity shares are issued to certain people who r either directors, employees or promoters in the company and other ppl as mentioned in corresponding SEBI regulation. these r issued to promote the employees and as a incentive.
technically sweat equity option is different frm equity shares which r issued to general public by public companies, the former type of shares r covered under non-voting shares and hav almost all other rights as available to voting shareholders except the voting option.
these r sum of the basic diff’s b/w sweat equity option and equity shares.
Can u give under which section u do not get Voting rights for Sweat Equity Shares
chck this link
http://www.bcasonline.org/articles/artin.asp?417
Please read this rule which will clarify all your queries if it is not a listed company.
The Unlisted Companies (Issue of Sweat Equity Shares) Rules, 2003.
hi every one , as far as i know sweat equity share is the share given by the company to those members who have used there intellectual rights with the company name. its a kind of reward given by the company to those shareholders. if m wronge then plz correct me!!