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    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?
    A Public Offer Correct Answer Incorrect Answer
    B Rights Issue Correct Answer Incorrect Answer
    C Preferential Allotment Correct Answer Incorrect Answer
    D Employee Stock Option Plan Correct Answer Incorrect Answer
    E Bonus Issue Correct Answer Incorrect Answer

    Solution

    Section 2(37) 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.

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