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Explain the following term/concept. Sweat Equity shares - Secretarial Practice

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Question

Explain the following term/concept.

Sweat Equity shares

Short Note

Solution

(a) Sweat equity shares are such equity shares, which are issued by a company to its directors or employees at a discount or for consideration, other than cash.

(b) The issue of sweat equity shares allows the company to retain the employees by rewarding them for their services.

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Methods of Issue of Shares
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Chapter 3: Issue of Shares - EXERCISE [Page 65]

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