Preferential allotment of shares
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 April 2013
Hi,
Where a public company has made preferential allotment of shares to its employees, can the difference between the face value of shares and the fair market value of the shares be treated as compensation paid to the employees?
Where a public company has made preferential allotment of shares to its employees, can the difference between the face value of shares and the fair market value of the shares be treated as compensation paid to the employees?
Ajay Mishra
(Expert)
15 April 2013
Hi
Its depend on whether you are alloting shares under ESOP scheme or through preferential allotment.
In ESOP it will be considered as compensation otherwise it will not be treated as compensation if shares are alloted through preferential basis.
Its depend on whether you are alloting shares under ESOP scheme or through preferential allotment.
In ESOP it will be considered as compensation otherwise it will not be treated as compensation if shares are alloted through preferential basis.
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