Esop
This query is : Resolved
Nishant Kumar
(Querist)
22 September 2012
Can ESOPs be used to increase the net worth of the company? If yes, then how?
Thanks.
Thanks.
CA Amit Talada
(Expert)
23 September 2012
definitely, when u are issuing shares net worth has to increase. but typically in ESOPs to employees of company at a low cost than market price, in that sense, if there is not much demand in market then u can issue shares to employees for more than face value and less than market value and in that sense you can use ESOPs for increasing the net worth.
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