The Curious case of Sweat equity

It is very late for me to write on sweat equity at this point of time after all the drama got over at the end of this year IPL3. Actually it is a non-cricketing term used in this year ipl off the field. so i took time for research activities on sweat equity and i am blogging it.

Put it simply,sweat equity are shares issued by a company to its employees or directors at a discount or for consideration other than cash.Every company can issue sweat equity.It is to reflect the value of services which an executive or an employee adds to his/her organization( present,past & future )

"Coming up with compelling plots a little bit inspiration and a lot of sweat equity"

Now coming to the recent controversies surrounding this so-called "sweat equity". Rendezvous consortium,an unregistered venture had won the franchise for the Kochi team which will take part in ipl4.It offered 4.75% stake in the kochi team (70 crore) to Dubai-based businesswoman,Sunanda Pushkar,a friend of Sashi tharoor.this started the sweat equity controversy.
According to rules,a company can issue sweat equity shares only on the completion of a year after being entitled to commence its business.(REndezvous started in august 2009,IPL auction March 2010).Issuance of sweat equity shares during a year cannot exceed 15% of paid up equity share capital or 5-crore whichever is higher.A separate resolution has to be passed.

The issue of sweat equity to Sunanda Pushkar is illegal& is in clear violation of companies act.the penalty though may be a paltry fine .

Thanks to sweat equity controversy as the people can know about a new term