Section 4(2) in The Unlisted Companies (Issue Of Sweat Equity Shares) Rules, 2003
(2)Approval of shareholders by way of separate resolution in the general meeting shall be obtained by the company in case of grant of shares to identified employees and promoters, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversion) of the company at the time of grant of the sweat equity shares.
