Companies Act, 1973 (Act No. 61 of 1973)Chapter VIII: DirectorsRestrictions on Directors, their Powers and Certain Acts223. Share option plans where director interested |
After the commencement of this Act no option or right given directly or indirectly to any director or future director of a company in terms of any scheme or plan, to subscribe for any shares of that company or to take up any debentures convertible into shares of that company on any basis other than that laid down in section 222(1)(c), shall be valid unless authorised in terms of a special resolution of that company: Provided that-
| a) | the term "future director" shall not include a person who becomes a director of the company after the lapse of six months from the date upon which such option or right is acquired by such person; and |
| b) | no such option or right shall be invalid in terms of this section if such director or future director of the company holds salaried employment or office in the company and is given such option or right in his capacity as an employee. |