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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


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 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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