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Sweat Equity Shares Issue

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(Querist)
13 June 2023 Can a company issue sweat equity shares for services to be received in future? Kindly quote with section
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
13 June 2023 Yes, it can be issued.
The term “sweat equity shares” refers to shares that a firm issues to its directors or workers in exchange for contributing intellectual property rights, know-how, or any other kind of value addition in exchange for non-cash consideration or at a discount.
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