In this article we will discuss about the Sweat Equity Shares and Employee’s Stock Option in a Joint Stock Company. Sweat Equity Shares: The Companies (Amendment) Act, 1999 introduced through section 79-A a new type of equity shares called 'Sweat Equity Shares'. The expression 'sweat equity shares' means equity shares issued at a discount or for consideration other than cash [...]
The following points highlight the top two classes of shares issued by a joint stock company. The types are: 1. Preference Shares 2. Equity Shares. Joint Stock Company: Type # 1. Preference Shares: Preference shares are those which carry; (i) A preferential right as to the payment of dividend during the lifetime of the company, and (ii) A preferential right [...]
In this article we will discuss about the Redemption of Preference Shares in a Joint Stock Company. Section 80 of the Companies Act allows a company, if authorised by its Articles of Association, to issue preference shares which can be redeemed by the company according to the terms of the issue; but the following legal restrictions apply to such redemption: [...]