Answer the following with reference to the Companies (Share Capital and Debentures) Rules, 2014, as to whether these are the eligible employees under Employee Stock Option ? (Yes/No with reasons) Aneesh is a director hol

CS Executive · Securities Laws and Capital Markets · PYQS · December 2018
Answer the following with reference to the Companies (Share Capital and Debentures) Rules, 2014, as to whether these are the eligible employees under Employee Stock Option ? (Yes/No with reasons) Aneesh is a director holding 11% of outstanding equity shares of the company.

Answer & Explanation:

No. As per Rule 12 (1) (ii), a director who either himself or through his relative or through anybody corporate, directly or indirectly, holds more than ten percent of the outstanding equity shares of the company, is not eligible employee. Hence, Aneesh is not an eligible employee for this purpose.

Topics: Companies Act, 2013

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