Question
Consider the following statements regarding regulation
of “Sweat Equity” in the Indian economy: 1. Sweat equity refers to shares issued by a company to its employees for non-cash consideration. 2. There is no maximum limit of sweat equity shares that can be issued by a listed company 3. Companies are only allowed to provide Sweat equity benefits to employees, who are exclusively working for a company and not to any of its group companies including a subsidiary or an associate. Which of the statements given above is /are correct?Solution
● Statement 1 is correct: Sweat equity is a nonmonetary contribution that the individuals or founders of a company make towards the company. Cash-strapped startups and business owners typically use sweat equity to fund their companies. ● Statement 2 is incorrect: The maximum yearly limit of sweat equity shares that can be issued by a listed company has been prescribed at 15% of the existing paid-up equity share capital or shares of the value of Rs 5 crore, whichever is higher. The issuance shall not exceed 25% of the paid-up capital at any time. In case of companies listed on the Innovators Growth Platform (IGP), the yearly limit will be 15% and overall limit will be 50% of the paid-up capital at any time. It will be applicable for 10 years from the date of the company’s incorporation. ● Statement 3 is incorrect: Companies will now be allowed to provide share-based employee benefits to employees, who are exclusively working for such a company or any of its group companies including a subsidiary or an associate.
Which property of a transaction ensures that it leaves the database in a consistent state, even in case of errors or failures?
In which network topology is the failure of a single node least likely to disrupt the entire network?
Which complexity class includes problems for which a proposed solution can be verified in polynomial time?
What is the purpose of the "HAVING" clause in an SQL query?
Which routing algorithm is commonly used in the network layer to calculate the shortest path between network nodes?
Which data analytics technique is best suited for identifying hidden patterns or relationships in large datasets?
You have a positive-edge-triggered D flip-flop. If the current state is Q = 0 and the D input is 1, what will be the state after the clock edge?
Ethernet operates in which layer/s?
Which one of the following expressions does NOT represent the exclusive NOR of x and y?
Which network topology requires the highest amount of cabling?
Relevant for Exams:
