Business · India Bureau
Petronet LNG seeks shareholder nod for director commission plan
India's leading liquefied natural gas importer is asking shareholders to approve continued payment of director commissions at 1 per cent of annual profits through fiscal 2031. The arrangement, last renewed in 2021, reflects the company's robust financial health.
LSN India ·
Petronet LNG Ltd has moved to secure shareholder approval for extending its director commission scheme for a further five-year period spanning fiscal years 2026-27 to 2030-31, according to a notice issued for the company's upcoming general meeting.
Under the proposal, the board would be authorised to distribute commissions capped at 1 per cent per annum of profits, calculated in accordance with Section 198 of the Companies Act, 2013, among directors in amounts and proportions to be determined by the board from time to time.
Shareholders last endorsed the commission arrangement in September 2021, approving payments for the five-year period through fiscal 2026. The proposal marks a continuation of a practice first introduced in 2007, with subsequent renewals granted in 2011 and 2016.
Petronet attributed the proposed extension to the company's "healthy financial position," underlining its ability to sustain the director compensation structure. As India's largest gas importer, Petronet plays a critical role in the country's energy security landscape.