| Question And Answer | |
|---|---|
| Subject: | does ESOP gives voting rights |
| Category: | General Law, Income-Tax |
| Querist: | muskaan |
| Answered by: | Research Team |
| Tags: | ESOP, voting rights |
| Date: | June 22, 2023 |
does ESOP gives voting rights
The equity shares granted under the Employee’s Stock Option Plan to an employee comes with a vesting period. It is only after the vesting period has ended and the employee has exercised his right to convert the option into shares (at an exercise price), the employees get voting rights along with title of the shares (section 43 of the Companies Act, 2013) It is however, important to note that if preference shares are granted under the ESOP, then voting rights are not included.
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