Seeks shareholder approval to pay directors up to 1% of profit as commission

What happened

• Petronet LNG is asking shareholders at its upcoming general meeting to approve a commission for its directors of up to 1% a year of profits, calculated under Section 198 of the Companies Act.
• The approval would apply from 2026-27 to 2030-31. Whole-time directors, including the managing director and CEO, and independent directors would be covered, with the board deciding how much each receives.
• Shareholders last approved a similar commission on 28 September 2021, for 2021-22 to 2025-26.
• For 2025-26, CEO Akshay Kumar Singh and the other whole-time directors were paid ₹26.5 lakh each as commission, and independent directors ₹10 lakh each, Business Standard reported.

Why it matters

The 1% is an upper limit, not the amount that will be paid. The commission can be paid only if shareholders pass the resolution.

Good to know: Commission is a payment to directors linked to the company's profits, on top of their salary or sitting fees.

Key facts

Ceiling

1% of profits a year

Period

2026-27 to 2030-31

Read the source

• Petronet to pay 1% of profit as commission to its directors for 5 yearsBusiness Standard