4.7 Issue of Sweat Equity Shares

Sweat equity — shares issued to directors or employees for their know-how, expertise or rights (IP contributions, the value of human capital) rather than cash — the Companies Act 2063's recognition of the knowledge economy's currency. The discipline: valuation by the recognised route (the experts' valuation); the approval process (the general meeting's sanction and the conditions the Act prescribes); the lock-in faces and the caps; the disclosure — the sweat issue must be seen to be earned, not gifted (the promoters'-profit logic of Unit 2.2).