The share capital of Raney Ltd. is ₹30 crore. 'Russel' is appointed as the managing director of the company, the company wants to compensate him by issue of shares for supplying technical know-how without any cost. In th

Rule 8(4) of Companies (Share capital and Debentures) Rules, 2014 states that the company shall not issue sweat equity shares for more than fifteen percent of the existing paid up equity share capital in a year or shares of the issue value of rupees five crore, whichever is higher, The issuance of sweat equity shares in the company shall not exceed twenty five percent, of the paid up equity capital of the company at any time. As the paid-up capital of the company is ₹30 crore. Hence he can be allotted with 15% of existing equity i.e. (15% of ₹30 crore up to ₹4.5 Crore) value of shares or ₹5 crore whichever is higher.