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

Yes, Rule 8(10) of Companies (Share capital and Debentures) Rules, 2014 states that the amount of sweat equity shares issued shall be treated as part of managerial remuneration for the purposes of sections 197 and 198 of the Act, if the following conditions are fulfilled namely- the sweat equity shares are issued to any director or manager; and they are issued for consideration other than cash, which does not take the form of an asset which can be carried to the balance sheet of the company in accordance with the applicable accounting standards.