Section 9(f) in The Unlisted Companies (Issue Of Sweat Equity Shares) Rules, 2003
(f)the amount of Sweat Equity shares issued shall be treated as part of managerial remuneration for the purposes of sections 198, 309, 310, 311 and 387 of the Companies Act, 1956 if the following conditions are fulfilled:(i)the Sweat Equity shares are issued to any director or manager; and,(ii)they are issued for non-cash consideration, which does not take the form of an asset which can be carried to the balance sheet of the company in accordance with the relevant accounting standards.
