Explain the provisions of the Companies Act, 2013 for Issue of Sweat Equity Shares. To what extent the Sweat Equity Shares can be issued to an Independent Director ?

According to Section 54 of the Companies Act, 2013 a company may issue sweat equity shares of a class of shares already issued, if the following conditions are fulfilled: (a) The issue is authorized by a special resolution passed by the company in the general meeting. (b) The resolution specifies the number of shares, current market price, consideration if any. (c) Not listed shares, the sweat equity shares are to be issued in accordance with Rule 8 of Companies (Share Capital and Debenture) Rules, 2014. Independent directors are not entitled for sweat equity shares.