Regulation 6 - Issue of Sweat Equity Shares to Promoters. - Securities and Exchange Board of India (Issue of Sweat Equity) Regulations, 2002

Issue of Sweat Equity Shares to Promoters. 6. (1) In case of Issue of sweat equity shares to promoters, the same shall also be approved by simple majority of the shareholders in General Meeting; Provided that for passing such resolution, voting through postal ballot as specified under Companies (Passing of the resolution by Postal Ballot) Rules, 2001 shall also be adopted; Provided further that the promoters to whom such Sweat Equity Shares are proposed to be issued shall not participate in such resolution. (2) Each transaction of issue of Sweat Equity shall be voted by a separate resolution. (3) The resolution for issue of Sweat Equity shall be valid for a period of not more than twelve months from the date of passing of the resolution. (3) For the purposes of passing the resolution, the explanatory statement shall contain the disclosures as specified in the Schedule.