Data Limited (listed on Stock Exchange) was incorporated on 1st October 2018 with a paid-up share capital of `200 crores. Within this small time of 4 months, it has earned huge profits and has topped the charts for its highly employee-friendly environment. The company wants to issue sweat equity to its employees. A friend of the CEO of the company has told him that they cannot issue sweat equity shares as 2 years have not elapsed since the time company commenced its business. The CEO of the company has approached you to advise them about the essential conditions to be fulfilled before the issue of sweat equity shares especially since their company is just a few months old.