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    Issue of shares to employees with differential rights

    Posted By : damini / Published on : 26-Feb-2020 06:45 AM / View : 389 / Comment : 0

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    Dear Members,

    Please reply on following query:

    Can a Private Company issue shares to its employees with following differential rights:-

    i. Have no voting rights

    ii. Have no right on tangible assets of Company

    iii. Cannot transfer shares to other than existing shareholders except in case of disinvestment

    If yes, under which Companies Act, 2013, section or rules can private company issue above mentioned shares.

    You are requested to reply as soon as possible.
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