Section 54 — Issue of sweat equity shares

(1) Notwithstanding anything contained in section 53, a company
may issue sweat equity shares of a class of shares already issued, if the following conditions are fulfilled,
namely:—
(a) the issue is authorised by a special resolution passed by the company;

1. Subs. by Act 1 of 2018, s. 12, for “discounted price” (w.e.f. 9-2-2018).
2. Ins. by s. 12, ibid. (w.e.f. 9-2-2018).
3. Subs. by Act 22 of 2019, s. 9, for sub-section (3) (w.e.f. 2-11-2018).

(b) the resolution specifies the number of shares, the current market price, consideration, if any,
and the class or classes of directors or employees to whom such equity shares are to be issued;
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(d) where the equity shares of the compan y are listed on a recognised stock exchange, the sweat
equity shares are issued in accordance with the regulations made by the Securities and Exchange Board
in this behalf and if they are not so listed, the sweat equity shares are issued in accordance with such
rules as may be prescribed.
(2) The rights, limitations, restrictions and provisions as are for the time being applicable to equity