Question

According to the Companies Act what is the term for the option given to the directors, officers, or employees of a company or its holding or subsidiary companies, allowing them the right to purchase or subscribe to shares of the company at a future date at a predetermined price?

Q: Answer-According to the Companies Act what is the term for the option given to the directors, officers, or...

Section 237 Employees stock option means the option given to the directors, officers or employees of a company or of its holding company or subsidiary company or companies, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the company at a future date at a pre-determined price.