Sweat Equity Shares
Shares issued to a founder or an employee for know-how, intellectual property or value addition rather than for cash, the instrument clients reach for when there is no money to pay a key person.
- 9 pages
- 111
- Word and PDF
- 12 September 2026
The 5 formats inside
- 1Board resolution, issue of sweat equity sharess.54 · Rule 8On its own₹149
- 2Rule 8(2) explanatory statement, content checklistRule 8(2) · Rule 8(8)On its own₹149
- 3Special resolution, issue of sweat equity sharess.54 · Rule 8On its own₹149
- 4Board resolution, allotment of sweat equity sharess.54 · Rule 8 · PAS-3On its own₹149
- 5Register of sweat equity shares, Form SH-3Rule 8(13)On its own₹149
Read the opening
The first part of “Board resolution, issue of sweat equity shares”, as it downloads. Blanks are highlighted.
Extract from the minutes of the meeting of the Board of Directors of [Company Name] Private Limited held on [Date of board meeting approving sweat equity issue]
ISSUE OF SWEAT EQUITY SHARES
The Chairman informed the Board that [Sweat equity recipient's name], [a Director / an employee] of the Company, had [developed and made available to the Company the [describe the intellectual property] / provided the know-how described in the Annexure / made the value addition described in the Annexure], and that it was proposed to issue sweat equity shares to him in consideration thereof.