Nestle resolution for royalty payout approved

The local arm of Swiss packaged foods maker Nestle India said on Thursday that a resolution for continuity of royalty payments every five years has been approved with a majority at its 60th Annual General Meeting (AGM).

Nestle India chairman and managing director Suresh Narayanan said in a statement issued to the stock exchange: “The shareholders have shown faith in management’s ability to deliver long term shareholder value.”

Nestle, which presently pays 4.5% of its net sales as royalty towards its parent company, had sought shareholder approval for royalty payments every five years to its parent company.

Though the general licensing agreements are reviewed periodically by the audit committee, the resolution has been modified to provide for shareholder approval every five years, in accordance with laws and regulations, the maker of KitKat chocolate and Maggi instant noodles had said.

The company had increased its royalty payment from 3.5% of net sales in 2014 to 4.3% in 2018.

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/nestle-resolution-for-royalty-payout-approved/69051138

Comments

0