Question

To issue sweat equity shares, company shall ensure that it has elapsed at least __________ year after commencement of business.

• A. $5$
• B. $7$
• C. $1$
• D. $10$

Answer 1

The correct option is C $1$

Companies are entitled to issue sweat equity shares after expiry of 1 year from the date of the commencement of the business. Issue of sweat equity shares is authorised by a special resolution containing the prescribed particulars passed by the company at the general meeting.