Section 8(2) in Companies (Share Capital and Debentures) Rules, 2014
(2)The explanatory statement to be annexed to the notice of the general meeting pursuant to section 102 shall contain the following particulars, namely:-(a)the date of the Board meeting at which the proposal for issue of sweat equity shares was approved;(b)the reasons or justification for the issue;(c)the class of shares under which sweat equity shares are intended to be issued;(d)the total number of shares to be issued as sweat equity;(e)the class or classes of directors or employees to whom such equity shares are to be issued;(f)the principal terms and conditions on which sweat equity shares are to be issued, including basis of valuation ;(g)the time period of association of such person with the company;(h)the names of the directors or employees to whom the sweat equity shares will be issued and their relationship with the promoter or/and Key Managerial Personnel;(i)the price at which the sweat equity shares are proposed to be issued;(j)the consideration including consideration other than cash, if any to be received for the sweat equity;(k)the ceiling on managerial remuneration, if any, be breached by issuance of such sweat equity and how it is proposed to be dealt with;(l)a statement to the effect that the company shall conform to the applicable accounting standards; and(m)diluted Earning Per Share pursuant to the issue of sweat equity shares, calculated in accordance with the applicable accounting standards.
