Free Float Definition
Although this definition fs not explicitly covered in syllabus, but itis important definition (i.e this concept was used while covering
reverse merger)
arabe
a) owes nyse tom
0 Ssrone COtpanes ores ont Grup Conpanes(ane| | heer Associated Companies and
ee snatesnetbe soa} | Uadetakings Detition af companies Act,
into open aviator canes one 2017
vy Tn Shares: emp oy ok Sha
(i Rnyote catego ht we bated ton sens
rember FAFR Concept of Lock-n-
Explanation: For the purpose ofthis definition: Period (A period in which employees
are not able to sell their shares) -
1 “Spenser has the same mesring ss defied in The Co
Sane |ERS-02 Share Based Payment
1. “Serr Management Cicer and “Associate have th same mean
defined in the Secures Ac
"Sponsors" Definition As Per "The Companies (lu of Capital) Rules, 1996, [Remember concept of Reverse Merger
Sponsor means: where shares of sponsors shal be inducted
{a} person who has contributed inital capital in the issuing company and has the right to into COCin freexe status»
_appoint majority of the directs onthe board of the issuing company dicectiy or inicectly by virtue
‘of shareholding held ints oun.name and inthe names of his relatives, sociated companies and
associated undertakings;
Tavs pon ho rele he person refered spin cle (lsd) — eae ns a
a ofthe isuingcompany whether |” [Spore to nate person or wane ot
sivectvor erect
shares by operation of law.
‘Explanation: For the purpose of this sub-rule the cerm “relative” Includes a spouse, father, mother,
brother, sister and son or daughter, including a step or adopted child.
“Senior management officer” inchudes, chief executive officer managing director, deputy managing | [Example includes : Company Secretary,
director chief operating officer and chief regulatory officer or holder of such by whatever Chief Financial Officer.
name called;
ee ee
associat! in elation to— Individual ~ Senior Monagement Officer
[an nia, means
{0 that individuals spouse, son, adopted son, stonson, daughter, adopted daughter,
stepdaughter, father, stepfather, mother, stepmother, brother, stepbrother, sister
Tara] orstepsster;
Person (ay amano! wih anda st
{i any company in which thatindidual or any of te persons mentioned in sub clause has
contro of twenty pstcent armare ofthe voting power in the company, whether such controls
exercised individually oF oi
(1) ny empleo hat nian or
‘than twenty per cent of the voting power in that company, anda reference inthis Act to an associated
person or associated company shall be construed accordingly;
fs 4 company, means another company in which the fist mentioned company has control of not less