Zigzag Ltd. is a fast growing start-up company and has issued ESOPs to Rinku, Rina and Reshma during FY 2017-18. Due to a major accident in the premises of the company last month, Rinku died on the spot, Rina suffered ma

As per Section 62 of the Companies Act, 2013 read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014: Sub-rule 8(d) - Death of an employee: In the event of the death of an employee while in employment, all the options granted to him till such date shall vest in the legal heirs or nominees of the deceased employee. Sub-rule 8(e) - Permanent incapacity: In case the employee suffers a permanent incapacity while in employment, all the options granted to him as on the date of permanent incapacitation, shall vest in him on that day. Sub-rule 8(f) - Resignation or termination: In the event of resignation or termination of employment, all options not vested in the employee as on that day shall expire. However, the employee can exercise the options granted to him which are vested within the period specified in this behalf, subject to the terms and conditions under the scheme granting such options as approved by the Board. Hence, option will vest in the case of Rinku and Rina and in the case of Reshma, options will expire.