Board of Directors keep sanctioning the extension of the robe royalty fee.
Nestle India stated on Wednesday that it decided to go ahead with the extension of the payment agreement and pay the royalty licence fee at the present rate of 4. 5% to its parent company, the Société des Produits Nestlé S. A. The decision was made, bearing in mind the members and stakeholder. The promotion of this continuation was approved by the Board of Directors following the Audit Committee’s suggestion. With regard to this decision, all Independent Directors voted for the matter while the Executive Directors did not vote since they stepped out of the room due to the related party aspect of the transaction in line with Regulation 2(1)(zb) of the Listing Regulations.
Some of the provisions of the royalty agreement may include the following;
The royalty licence fee will remain 4 per cent of the authorised capital. 5%, before taxes under the current provisions of General Licence Agreements with the Swiss Parent Company. Nestle India also noted that the board will determine the royalty rate to be paid through its approval, though the approvals will be reviewed every five years due to regulation.
New Director Appointment
Nestle India also declared that to join its Board, Sidharth Kumar Birla, a former finance executive, had been appointed as an Additional Director cum Independent Non-Executive Director. He will take a five-year term; he has gained much experience and financial insight to the corporate world.
Upcoming Annual General Meeting
Also, due to COVID-19 guidelines, Nestle India has changed the date of its 65th Annual General Meeting from May 18 to July 8. In this meeting, the amount to be paid as the final dividend is also determined. If declared, this would be paid on August 6, 2024.
These decisions bear evidence of Nestle India’s continued strive towards exercising clear governance and constant focus on regulatory compliance to address stakeholders and related issues.
