Question

    The issuance of sweat equity shares in the Company

    shall____________, of the paid -up equity capital of the Company at any time
    A Be more than fifteen percent Correct Answer Incorrect Answer
    B Be less than fifteen percent Correct Answer Incorrect Answer
    C Exceed twenty-five percent Correct Answer Incorrect Answer
    D Not exceed twenty five percent Correct Answer Incorrect Answer
    E Not exceed twenty five percent or such higher amount as may be prescribed Correct Answer Incorrect Answer

    Solution

    Companies Act  Companies (Share Capital and Debentures) Rules, 2014- Rule 8. Issue of Sweat Equity shares- (4) The company shall not issue sweat equity shares for more than fifteen percent of the existing paid- up equity share capital in a year or shares of the issue value of rupees five crores, whichever is higher: Provided that the issuance of sweat equity shares in the Company shall not exceed twenty five percent, of the paid- up equity capital of the Company at any time.

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