Sweat equity shares are issued by a company to its directors or employees for:

1. Section 2(88) defines sweat equity as shares issued at a discount or for non-cash consideration for know-how, IP or value additions. 2. Such issue requires a special resolution and post-issue lock-in. 3. Hence (B). _Source: ICAI BoS CA Inter Paper 2 — Share Capital and Debentures_