New Companies Bill fuels royalty rush

The proposed changes in the Companies Bill, 2012, has led to a rush among companies to increase royalty payments to their foreign parents. Under the new Bill, if approved, promoters will have to take approval of 75 per cent of the non-promoter shareholders on any such proposal. The new regulations will make it harder for the promoters to charge such fees from the company as royalty payments or technology transfer fee, say legal experts.

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