Hello, how much claim does a venture capital firm has on the appreciation of goodwill in the brand that it had invested in ?
Sagnik (Management Trainee) 29 February 2012
Hello, how much claim does a venture capital firm has on the appreciation of goodwill in the brand that it had invested in ?
S C KHOSLA (Ex - Scientist `F`) 01 March 2012
I am trying to answer
Sweat equity shares are alike Employee stock options with a one year vesting period.
In case of listed companies on BSE/NSE/any recognized stock exchange, the sweat equity shares are to be issued as per guidelines of SEBI.
In case of unlisted companies , sweat equity shares can be issued as prescribed. However it can not be issued before one year of commencement of operations and there is cap of 15 % that can be issued without a specific central govt approval.
In any case, do not overvalue and fairness should not be compromised.
Kindly read Section 79 A of Companies Act before you decide.
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