Explain Sweat Equity Shares.

Sweat Equity Shares As per Section 2 (88) of the Companies Act, 2013, "sweat equity shares" means such equity shares that are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. 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: The issue is authorized by a special resolution passed by the company in the general meeting; The resolution specifies the number of shares, current market price, consideration if any and the class or classes of directors or employees to whom such equity shares are to be issued; Not less than one year has elapsed at the date of the issue, since the date on which the company was entitled to commence business; The sweat equity shares of a company whose equity shares are listed on a recognised stock exchange are issued in accordance with the regulations made by SEBI in this regard and if they are not listed the sweat equity shares are to be issued in accordance with the rule 8 of Companies (Share Capital and Debenture) Rules, 2014.