Sweat Equity Shares

The expression ‘Sweat Equity Shares’ means equity shares issued by the company to employees or directors at a discount or for consideration other than cash for providing know-how or making available right in the nature of intellectual property rights or value additions, by whatever name called. The companies will be allowed to issue Sweat Equity Shares if authorized by a resolution passed by a general meeting. The resolution should specify the number of shares, their value and class or classes of directors or employees to whom such equity is proposed to be issued. All limitations, restrictions and provisions relating to equity shares shall be applicable to sweat equity shares as well.