Write short notes on Option on share capital

Answers
Disclosure of the particulars of any option on unissued share capital either in the face of the balance sheet or in notes should be made. An option on shares arises when a person has acquired a right under an agreement with the company to subscribe for share in the company if he so chooses. Such options generally arise under the following circumstances:
i) Under the promoter‟s agreements subsequently ratified the company;

ii) Collaboration agreement;
iii) Loan agreements, debenture deeds;
iv) Agreements to convert preference shares into equity share; and Other contracts, such as for supply of capital goods and/or merchandise.

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