Akzo Nobel India Ltd. said that its Board of Directors in a meeting held on October 21, has announced a royalty proposal for its Paints Business, in order to gain smooth access to AkzoNobel group\'s technology and brands.

Taking cognizance of the views expressed by certain shareholders, the Company had sought a reduction in the royalty rates.

At its meeting held on February 14, the Company\'s Board approved a reduction of 1% in the effective royalty rates, from a level of ~3% approved earlier w.e.f. October 2014.

As announced earlier, up to September 2014, the rate of royalty applicable will remain unchanged at ~1% of net sales.

Akzo Nobel India\'s Board also agreed to consider a buyback of shares from minority shareholders, for implementation at the earliest opportunity, on completion of the ongoing merger process.

The Board will, after due evaluation, decide on proceeding with the implementation of the buyback proposal on closure of the merger, after obtaining all necessary approvals.