Petronet LNG seeks shareholder approval to continue paying directors a commission linked to company profits. The company’s proposal is to allow the commission to be distributed for another five financial years, according to reporting from multiple outlets.
The commission would be capped at up to 1% of profits calculated under Section 198 of the Companies Act, 2013. The proposal covers the amount that can be distributed annually, subject to the approvals required under Indian corporate governance rules.
While outlets align on the core details—Petronet LNG’s request, the profit-linked nature of the commission, the 1% cap, and the five-year continuation—coverage centers primarily on the regulatory and shareholder-approval aspect of the arrangement rather than on broader operational or financial developments. The company is therefore presenting this issue to shareholders as a renewal of an existing remuneration mechanism.
