Abhiman is a permanent employee of Y2Z Commodities Ltd. with a turnover above ₹ 200 crore for the year ended 31st March, 2018. He is working in India for last two years and is also a promoter of the Company. With referen

Section 62(1)(b) read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 deals with issue of Employee stock options. A company, other than a listed company, which is not required to comply with Securities and Exchange Board of India Employee Stock Option Scheme Guidelines shall not offer shares to its employees under a scheme of employees' stock option (hereinafter referred to as "Employees Stock Option Scheme"), unless it complies with the following requirements, namely:- the Employees Stock Option Scheme has been approved by the shareholders of the company by passing a special resolution. Employee for the purpose of Section 62(1)(b) means- a permanent employee of the company who has been working in India or outside India; or a director of the company, whether a whole time director or not but excluding an independent director; or an employee as defined in clauses (a) or (b) of a subsidiary, in India or outside India, or of a holding company of the company but does not include - an employee who is a promoter or a person belonging to the promoter group; or 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. Applying the above provisions in the case given, Mr.Abhiman is not eligible to obtain shares under Employees' Stock Option scheme as he is a promoter though permanent employee. In other case, the Company can issue shares can be issued under Employees' Stock Option scheme to Mr. Abhiman if he is a non-independent additional director and does not hold more than 10% of outstanding equity shares of the company.