Which of the following is correct?

CS Executive · Corporate and Management Accounting · PYQS · December 2020
Which of the following is correct?
(A) The company shall not issue sweat equity shares for more than 15% of the existing paid up equity share capital in a year or shares of the issue value of rupees five crore, whichever is higher.
(B) The company shall not issue sweat equity shares for more than 15% of the existing paid up equity share capital in a year or shares of the issue value of rupees 5 crore, whichever is lower.
(C) The company shall not issue sweat equity shares for more than 25% of the existing paid up equity share capital in a year or shares of the issue value of rupees 5 crore, whichever is higher.
(D) The company shall not issue sweat equity shares for more than 25% of the existing paid up equity share capital in a year or shares of the issue value of rupees 5 crore, whichever is lower.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Corporate Accounting

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