The Law talks

  What are Sweat Equity Shares? The Promoters and employees who contribute to the formation of the company may like to get compensated against their hard work (Sweat) in the form of equity either discounted price or consideration other than cash. This is what term as sweat equity. It helps the busines s retain its brilliant human resources and also raise fund without availing debt . Definition as per section 2(88) of companies Act 2013 " 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;   Explanation- “Know How” mean- Providing tech...

    Let’s discuss the provision of Subsidiary and Holding Company As per the Companies Act, 2013 Subsidiary Company Section 2(87) " subsidiary company" or "subsidiary in relation to any other company (that is to say the holding company), means a company in which the holding company— (i) Controls the composition of the Board of Directors ; or (ii) Exercises or controls more than 1/2 of the total voting power either at its own or together with one or more of its subsidiary companies: Conditions: Such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed . Explanation.— For the purposes of this clause,— (a) a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company; (b) the composition of a company's Board of Directors ...