Hi,
Can a pvt Ltd co issuing ESOP have its vesting period less that 1 year from the date of Grant?
The company has issued it in the year 2011, when Companies act 1956 was prevalent.
Need advice.
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Esop guidelines for private ltd co
Replies (5)
Please find below mentioned document for you information
there is no guidelines as to the 1 year gap between the grant date n vesting date.
There shall be minimum one year gap between grant of option and vesting of option.
suppose option granted by company to employee on 1st March 2017 , the option shall not be exercised before 1st March 2018. One year period is vesting period. And after the vesting period , employee has the right to exercise the option. After receiving the application money , Company has to allot the shares within 60 days of receipt of application money .
As per sub rule 6 of Rule 12 of Companies (Share Capital and Debentures) rules, 2014 There shall be minimum one year gap between grant of option and vesting of option.
But you need to refer the scheme if any prepared by the Company at the time of issue.
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