Question

Relevant date for the purpose of determining pricing of sweat equity shares shall be the date which days prior to the date on which meeting of the general body of the shareholder is convened

Answer 1

Answer:

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Answer 2

Relevant date” for this purpose means the date which is thirty days prior to the date on which the meeting of the General Body of the shareholders is convened, in terms of clause (a) of sub section (1) of section 79A of the Companies Act.

Explanation:

• In lieu of their "contribution" to the "company's development", sweat shares "reward the beneficiaries" by providing incentives. "Sweat equity shares" also allow for greater employee participation & interest in an organisation's growth, as these  motivate employees to make a greater contribution to the enterprise they feel they have a stake in.
• Instead of contributing to the "development of the company", sweat share rewards the recipients for giving them incentives. Sweat equity shares also help to increase the participation and the stake in an organisation's growth by encouraging employees to make more contributions to the company that they believe they are involved in.

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what are sweat equity shares​ - Brainly.in

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