Whether the Authorized Signatory of Foreign Company can be the same as its Nominee?
What is difference between Liquidation and Winding up?
If shares are sold after the ex-date/record date, would eligibility for the rights issue still apply?
Can the services of Payment Aggregators (PA) be used for loan disbursals and repayments?
Can subsidiary company hold shares in its holding company?
What is the difference between Compounding and Adjudication?
Can Peer Review be done by proprietor / partner of the Practice Unit peer reviewed by the Reviewer?
Does getting empanelled as a Reviewer with Institute ensures the allotment of Peer Review work?
Compliance Calendar LLP is Recognised as Startup by DIPP Under Ministry of Commerce & Industry, Government of India
The issuance of shares to employees under an Employee Stock Option Plan (ESOP) is a significant decision that can impact the ownership and control of the company. Therefore, to ensure transparency and protect the interests of all shareholders, the Companies Act, 2013 requires that companies obtain a separate special resolution for the issuance of shares under an ESOP scheme.
A special resolution is a resolution that requires the approval of at least 75% of the shareholders present and voting at a general meeting. By requiring a separate special resolution for the issuance of shares under an ESOP scheme, the Act seeks to ensure that the decision is taken after due deliberation and with the consent of a significant majority of the shareholders.
Moreover, an ESOP scheme can dilute the existing shareholding of the company and impact the financial performance and growth prospects of the company. Therefore, the requirement of a separate special resolution for the issuance of shares under an ESOP scheme provides an additional layer of protection for the interests of the existing shareholders and ensures that the company's growth is aligned with their expectations.
Overall, the requirement of a separate special resolution for the issuance of shares under an ESOP scheme is a measure to ensure transparency, accountability, and fairness in the decision-making process of the company.