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      Question

      As per the Companies Act, 2013 the sweat equity shares

      are issues to whom by the company?
      A Directors Correct Answer Incorrect Answer
      B Debenture Holders Correct Answer Incorrect Answer
      C Existing shareholders Correct Answer Incorrect Answer
      D All a, b c & d Correct Answer Incorrect Answer
      E Both b & c Correct Answer Incorrect Answer

      Solution

      Section 2(88) 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.

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