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Employee Stock Ownership: Demystifying Corporate Social Responsibility and Taxation in India
Abstract
An Employee Stock Ownership Plan (ESOP) is a strategic welfare extended to the employees in a company in the form of sharing the profits and progress of a company. The managerial personnel who have decided to go for ESOP strategy have to decide about the centre for power of control in day-to-day business operations. Thus, corporate decision making is made crucial when ESOP is decided to be followed to strengthen the ownership of an enterprise. The main challenge in issuing ESOP is the dilution in the management. This chapter deals with the corporate social responsibility, corporate governance and tax implications associated with ESOP.
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