Issue of shares against royalty

911 views 1 replies

Dear All,

our company is a foreign subsidiary company and is a PVT. Ltd. Company, they are paying royalty to its 100% holding company, now my question is, can we issue equity shares to the holding company in lieu of paying royalty ????  if yes do we need to pass shareholder's resolution or only board resolution is sufficient?

 

Please advice

Regards

Ashwin

Replies (1)

Dear Ashwin,

1.An indian company may issue shares in lieu of payment of royalty to a fireign company subject to pricing guidelines specified by RBI.

2. There is no specific provision in the companies act, 1956 with regard to further issue of shares in the case of a private limited company.

3.The AOA of most private limited companies vest the power of issue of share capital in the board of directors by an express provision.

4. Once go through aoa and follow the procedure to issue shares in lieu of royalty.

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details