Strong Ltd. is contemplating to introduce Employees Stock Purchase Scheme (ESPS). As a Practising Company Secretary, advise the management on the following issues : (iii) The nature of approvals to be taken from the shar

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2016
Strong Ltd. is contemplating to introduce Employees Stock Purchase Scheme (ESPS). As a Practising Company Secretary, advise the management on the following issues : (iii) The nature of approvals to be taken from the shareholders of the company.

Answer & Explanation:

No scheme shall be offered to employees of a company unless the shareholders of the company approve it by passing a special resolution in the general meeting. The explanatory statement to the notice and the resolution proposed to be passed by shareholders for the schemes shall include the information as specified by in Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014.

Topics: Employee Stock Option Schemes (ESOS)

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