Sweat equity shares can be issued to _____________.

directors of the Company

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employees of the Company

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bankers of the Company

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both A and B

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Solution

The correct option is B both A and B
According to Section 54 of the Companies, 2013, sweat equity shares can only be issued by a company to its Directors or Employees, at a discount or for a consideration other than cash, for their providing of know-how or creation of intellectual property rights like trademark, patent, copyright or value additions.

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