How Do I Calculate Sweat Equity Shares for a New Director in a Young Private Company?

hr_bprasad
I want to know the procedure/method to calculate the number of sweat equity shares for a new director in a private limited company that has been incorporated for not more than a year. Please advise.

Regards,
B. Prasad
hr_bprasad
Thanks, shares are not listed, and the Companies Act is silent about the way of calculating sweat equity shares (SES). The Act only defines the limit of issue of SES. I mean to say that if I am going to appoint a person as a director, then what is the percentage or number of shares that will be issued as sweat equity? As per my knowledge, we can calculate the contribution of the new director into the business. After finalizing, I will connect with you soon.

Thanks & Regards,
B Prasad
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute