Yale is a nominee director on the Board of a listed company. On the proposal of ESOP in the Board meeting, he objected about his exclusion from this scheme. State the prior conditions to be fulfilled for a nominee direct

As per regulation 4 of SEBI (Share Based Employee Benefits) Regulations, 2014, an employee shall be eligible to participate in the schemes of the company and where such employee is a director nominated by an institution as its representative on the board of directors of the company:- (i) The contract or agreement entered into between the institution nominating its employee as the director of a company, and the director so appointed shall, inter alia, specify the following:- (a) whether the grants by the company under its scheme(s) can be accepted by the said employee in his capacity as director of the company: (b) that grant if made to the director, shall not be renounced in favour of the nominating institution; and (c) the conditions subject to which fees, commission, other incentives, etc. can be accepted by the director from the company. (ii) the institution nominating its employee as a director of a company shall file a copy of the contract or agreement with the said company, which shall in turn file the copy with all the stock exchanges on which its shares are listed. (iii) the director so appointed shall furnish a copy of the contract or agreement at the first board meeting of the company attended by him after his nomination. In the current problem, if the above conditions have been satisfied, Yale is eligible for ESOP and company cannot exclude him on the proposal of ESOP.