Employee Stock Option Plan or ESOP is a process by which the employees are rewarded with the ownership stake in the company by way of issue of shares. This is done with the object of motivating employees to contribute to the growth and profitability of the company. By subscribing to the Company’s shares employees will have a sense of belongingness and will have the opportunity to participate in the wealth creation of the Company. An ESOP is effected through passing Special Resolution of Members in General Meeting.
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