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According to Section 79A of Indian Companies Act,1956 shares issued by the company to its employees and directors at discount or for consideration other than cash for providing know how or making available intellectual property rights or value additions are known as sweat equity shares.

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Sweat shares mean?

Sweat shares are equity shares issued by a company to employees or directors at a discount. It can also be a reward for an individual's contribution to a project.


When will Sweat equity shares be issued?

Sweat equity shares as per Companies Act 2013 state that ‘At least one year must have elapsed between the commencement of the business by the company and the date of the issue.’ Compliance of Rules The sweat equity shares are issued in accordance with the regulations made by SEBI in a listed company whose shares are listed on well-known Stock exchange. In the case of an unlisted company, rules by the Central Government should have been applied. Register of Sweat Equity Shares : Maintain a Register in Form SH-3 (a) The company shall maintain a register of sweat equity shares in Form No. SH.3 and shall enter the details of sweat equity shares issued under section 54 therein. (b) the register of sweat equity shares shall be maintained at the registered office of the company or at such other place as may be decided by the Board. (c) the entries in the register shall be certified by the Company Secretary of the company or any other person authorized by the Board for the purpose.


Can equity shares be converted in to preference shares?

i want 2 convert the equity shares of my cmpany into preference shares


What are the release dates for Sweat Equity - 2006 Equity Upgrades?

Sweat Equity - 2006 Equity Upgrades was released on: USA: 12 September 2012


Meaning of equity shares and preference shares?

Equity share are ownership shares in a company. The term equity refers to all forms of ownership holdings. Preferred shares are a form of stock shares that come with voting rights and priority for dividends and distributions.


What does all-equity mean?

The meaning of an all-equity firm is one that has raised its entire capital through the sale of shares. This is form of raising capital is known as equity financing.


What are the release dates for Sweat Equity - 2006?

Sweat Equity - 2006 was released on: USA: 2 October 2006


What is an Equity Market?

Equity market is where shares of companies are traded.


Who are equity shareholders?

Equity shareholders are investors that own the shares of the firm. As an investor you need to pay to get ownership of the shares. The shares are either bought from another investor, or from the firm, when the shares are issued.


What is the difference between return on total equity and return on common equity?

Total equity and common equity are separate things where there is preference shares are also issued in that case only shares issued to common share holders are included in common equity while in total equity shares issued to preference shareholders are also included.


What is the difference between equity shares with voting rights and equity shares with differential rights?

Equity shares with voting rights are those shares which have right to vote with dividend where as in differential voting right shares , a shareholder sacrifices a some rate of dividend to get additional voting rights. By divya mittal


Four components of capital structure?

the components of capital structure(CS) includes: 1. CS with equity sahres only. 2. CS with equity and preference shares. 3. CS with equity and debentures. 4. CS with equity shares, preference shares and debentures.