Question And Answer
Subject: UNEUQUAL ALLOCATION OF SHARES UNDER ESOP TO EMPLOYEES
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Querist: DB
Answered by:
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Date: May 29, 2025
Query asked by DB

Can a company issue different shares to the employees under the esop policy for example those who work less they get equity shares with differential rights and to the good employees they give equity shares with voting rights.

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Answer given by

Section 43 of the Companies Act, 2013 allows companies to issue equity shares with differential rights as to voting, dividends, or other privileges. So, a company can design an ESOP policy to allocate non-voting equity shares to employees with shorter tenure or lower performance and voting equity shares to high-performing or senior employees.



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