OPTION ON SHARE CAPITAL

Schedule VI, Part I, requires disclosure of the particulars of any option on unissued share capital. An option on shares arises when a person has acquired a right under an agreement with the company to subscribe for share in the company if he so chooses. Such options generally arise under the following
circumstances :

  1.  Under the promoter’s agreements, subsequently ratified the company;
  2.  Collaboration agreement;
  3.  Loan agreements, debenture deeds (Refer to Section 81 of the Companies Act);
  4.  Agreements to convert preference shares into equity shares; and
  5. Other contracts, such as for supply of capital goods and/or merchandise.
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