What is Sweat Equity?
- To compensate the directors and employees, the concept of sweat equity has come into existence. It is for cementing the relationship of key managerial personnel to the company.
- Sweat equity is the new equity instrument floated in the companies (Amendment) Ordinance 1998.
- Sweat equity is a party's contribution to a project in the form of effort, as opposed to financial equity, which is a contribution in the form of capital.