Issue of shares against royalty

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.