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Category Archives: Company Law

ESOP: An Introduction

ESOP: An Introduction


Definition under Companies Act:

Sec 2(15A) defines employee stock option as

“option given to the whole time directors, officers or employees of a company which gives such directors, officers or employees, the benefits or right to purchase or subscribe at a future date, the securities offered by the company at a predetermined price.”

Above definition can be analyzed to conclude that ESOP involve granting some ownership stake in the company to employees (some or all)  in the form of options at reduced price than what prevails in the market. The personnel can exercise the options only after the vesting period elapses. Read More

Corporate Social Responsibility – Act, rules, circulars, notification, activities

Corporate Social Responsibility – Act, rules, circulars, notification, activities

Philanthropy in India is a phenomena as old as India itself. Corporates have  responsibility to the society  also in which it works. Indian corporates even before the introduction of  concept of corporate social responsibility into Companies Act, 2013 were in various ways involved directly or indirectly in various charitable and philanthropic activities integrating economic and social development for the benefit of human mankind at large.

Corporate Social Responsibility is a much wider concept than philanthropy and charity. Now Section 135 of Companies Act, 2013 provides for corporate social responsibility which runs as under:

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