Insights
Companies (Share capital and debentures) Rules 2014 amended wrt issue of sweat equity by start-ups
June 9, 2020The MCA has amended Rule 8(4) of the Companies (Share Capital and Debentures) Rules 2014 related to issue of sweat equity shares by a start-up company. To bring it in line with the revised definition of start-up, the second proviso to Rule 8(4), as amended, provides that a start-up may issue sweat equity shares not exceeding fifty percent of its paid up capital up to ten years from the date of its incorporation or registration.
To refer to the notification of the Companies (Share Capital and Debentures) Amendment Rules, 2020, dated 5 June 2020, click here.
