Write notes on the following: (i) Conditions for issuance of sweat equity shares

Section 54 of the Companies Act, 2013 provides that, a company may issue sweat equity shares of a class of shares already issued, if the following conditions are fulfilled, namely:- The issue is authorized by a special resolution passed by the company; The resolution specifies the number of shares, the 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, at the date of such issue, elapsed since the date on which the company had commenced business; and Where the equity shares of the company are listed on a recognized stock exchange, the sweat equity shares are issued in accordance with the regulations made by SEBI in this behalf and if they are not so listed, the sweat equity shares are issued in accordance with such rules made under Chapter IV of the Companies Act, 2013. Issue of sweat equity shares is also subject to the provisions as given under Rule 8 of the Companies (Share Capital and Debentures) Rules, 2014.