Document background
The Board Resolution For Grant of ESOP is a fundamental corporate document required under Indian law whenever a company wishes to grant stock options to its employees. This resolution is essential for both private and public companies implementing employee stock option plans, demonstrating compliance with the Companies Act, 2013, and, where applicable, SEBI regulations. The document typically follows a board meeting where the ESOP grant is approved and includes crucial details such as the grant size, eligible employees, vesting conditions, and exercise price. It serves multiple purposes: providing legal authorization for the ESOP grant, creating an official record for regulatory compliance, and establishing clear parameters for implementation. Companies commonly use this resolution during hiring drives, employee retention initiatives, or when implementing performance-based incentive programs.
