Question

Sweat equity shares are issued to:

• A. Employees
• B. Directors
• C. Both (A) and (B)
• D. None of them

Hint:

Sweat equity shares reward employees/directors for special services or intellectual contributions.

Answer 1

The Correct Option is C

Step 1: Definition of Sweat Equity Shares.
Sweat equity shares are shares issued by a company to employees or directors at a discount or for consideration other than cash.
Step 2: Purpose.
They are issued to reward contribution in the form of know-how, intellectual property rights, or value additions made to the company.
Step 3: Conclude.
Therefore, sweat equity shares are issued to both employees and directors.
Final Answer: \[ \boxed{\text{Both Employees and Directors}} \]