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Business Studies

Equity Capital

To which of t...

Question

To which of these persons, sweat equity shares can be issued by a company?

A

Employees

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B

Directors

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C

Providers of know-how or intellectual property rights or value addition

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D

All the above

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Solution

The correct option is D All the above
Sweat equity shares are given to the company's permanent employees, directors and providers of know-how / intellectual property rights/ value addition for their contribution to the company; it is a form of reward for their service to the company. They are issued in accordance with the Companies Act, 2013.

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