New Delhi: Shareholders of FMCG firm Nestle India Ltd have rejected a proposal to increase royalty payments to its parent firm, according to a regulatory filing by the company.
Nestle India's board had last month approved increasing the royalty payment to its parent company Société des Produits Nestlé SA (licensor) by 0.15 per cent per annum for the next five years, taking it to 5.25 per cent of net sales.
It had proposed to introduce an increase of 0.15 per cent per annum over the current royalty fee of Rs 4.5 per annum from July 1, 2024. Subsequently, it had sought its approval from its shareholders in the form of a general resolution through postal ballot.
In a regulatory filing, Nestle India said that of the total votes cast, 57.18 per cent were against the general proposal and 42.82 per cent were in favour.
The scrutineer's report states that the general resolution could not be passed due to lack of required majority in favor of the resolution.
In 2013, Nestle India's board had approved an increase of 0.20 per cent per year in royalty payments to its parent company over a five-year period, bringing it to 4.5 per cent of sales.
On the other hand, shareholders of Nestle India approved the special resolution of appointment of Sunita Reddy, Managing Director, Apoll Hospitals Enterprise Limited, as additional independent non-executive director for a period of five years from April 5, 2024. For consecutive years till April 4, 2029 with the requisite majority.
Nestle India's board had last month approved increasing the royalty payment to its parent company Société des Produits Nestlé SA (licensor) by 0.15 per cent per annum for the next five years, taking it to 5.25 per cent of net sales.
It had proposed to introduce an increase of 0.15 per cent per annum over the current royalty fee of Rs 4.5 per annum from July 1, 2024. Subsequently, it had sought its approval from its shareholders in the form of a general resolution through postal ballot.
In a regulatory filing, Nestle India said that of the total votes cast, 57.18 per cent were against the general proposal and 42.82 per cent were in favour.
The scrutineer's report states that the general resolution could not be passed due to lack of required majority in favor of the resolution.
In 2013, Nestle India's board had approved an increase of 0.20 per cent per year in royalty payments to its parent company over a five-year period, bringing it to 4.5 per cent of sales.
On the other hand, shareholders of Nestle India approved the special resolution of appointment of Sunita Reddy, Managing Director, Apoll Hospitals Enterprise Limited, as additional independent non-executive director for a period of five years from April 5, 2024. For consecutive years till April 4, 2029 with the requisite majority.
