Question : Which shares are awarded by a Company to its directors or workers in recognition of their commitment and hard work towards the company?
Option 1: Bonus Shares
Option 2: Sweat Equity Shares
Option 3: Prefrence Shares
Option 4: None of the above
Answer (1)
18th Jan, 2024
Correct Answer: Sweat Equity Shares
Solution : Sweat Equity Shares are defined as equity shares that a corporation issues to its directors or workers at a discount or in exchange for something other than cash in exchange for their expertise or the provision of rights that resemble intellectual property rights or value (Section 2(88) of the Companies Act).
Hence the Correct Answer is option 2.
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