Sweat Equity Shares

Sweat Equity Shares

Section 2(88) of the Companies Act 2013, sweat equity shares means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called.

Section 54 of the act makes it sure that the shares are issued on a special resolution of the company which can be issued only after completing one year of business by the company.