Issue of shares against royalty

Ashwin (Information Seeker) (155 Points)

15 July 2013  

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