Justify the following statement.ESOS is offered by a company to its permanent employees, Directors, and officers.

Justify the following statement.ESOS is offered by a company to its p

1.	Justify the following statement.ESOS is offered by a company to its permanent employees, Directors, and officers.
Answer» A company can raise funds by offering shares to its existing permanent employees by ESOS Scheme. Under this scheme permanent employees Directors or officers of the company are offered the benefit or right to purchase the equity shares of the company at a future date with a pre-determined price. ESOS is followed by the company to encourage its employees and to give certain benefits to them. Through ESOS, the company can retain its good and talented employees. A company may offer the shares directly to the employees or through an Employee Welfare Trust. It is helpful to the company to generate goodwill in the market also.