What Are My Legal Rights for Unissued ESOP Shares and Lack of Shareholder Updates?

I was working for an IT Pvt Ltd company for 3 years and need your advice on two issues:

Issue 1: ESOP Shares

I have a written document from the company for ESOP for 8 lakhs. It has been almost 2 years since I left, but the company has not issued me the shares, citing that the ESOP formalities are still in process. What are my legal rights?

Issue 2: Shareholder Communication

I also have shares in this company (unrelated to the above matter) and as a shareholder, the company does not keep me informed about any developments despite my requests. What are my legal rights?

For the first issue regarding ESOP shares, it is crucial to refer to the Employment Stock Option Plan (ESOP) guidelines outlined by the Companies Act, 2013, and the SEBI (Share Based Employee Benefits) Regulations, 2014. These regulations specify the obligations of the company to issue shares to employees within a stipulated time frame. In your case, if the company has failed to provide you with the shares as per the agreed terms, you have the legal right to seek recourse through legal channels. It is advisable to consult with a legal professional specializing in labor laws to understand the best course of action to secure your entitled ESOP shares.

Regarding the second issue of shareholder communication, as a shareholder in the company, you have the right to be informed about significant developments and decisions affecting the organization. In India, the Companies Act, 2013, mandates that companies must communicate effectively with their shareholders. If the company is not fulfilling its obligation to keep you informed despite your requests, you can escalate the matter by formally addressing your concerns to the company's board of directors or through legal means. It is recommended to document all communication attempts and seek guidance from a legal advisor to ensure your rights as a shareholder are upheld.