ESOP

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Mamta Batra (Querist)
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16 February 2010 can a unlisted private company issue the shares to the consultant of the company under ESOP Scheme? If the company has covered the consultant in the defination of Employee and mentioned the same in the Trust Deed.

Ankur Garg

Ankur Garg (Expert)
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16 February 2010 Ya you may go ahead with the issue. But check your ESOP scheme and cover the consultant in the scheme.

If you can successfully cover the consultant in the definition of Employee through ESOP scheme or trust deed then there is no prob.

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REgards

Mamta Batra

Mamta Batra (Querist)
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18 February 2010 But Sir,

Sec 2(15A) says employee stock option means the option given to whole-time directors, officers or employees of a company, which gives such directors, officers or employees the benefit or right to purchase or subscribe at a future date the securities offered by the company at a pre-determined price.

Consultants or any other person is not included.

Mamta Batra

Mamta Batra (Querist)
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18 February 2010 Can a company give advance to trust for purchasing its own shares?
Is there any prohibition pls quote the relevant section if any?

Rasesh

Rasesh (Expert)
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20 February 2010 I believe consultants cannot be covered under the esop. consultants are like professionals who raise monthly / periodic invoice for their professional fees.

Giving advance to trust to purchase its own shares is also not allowed. It would be deemed that the company is buying its own shares.

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