Netflix India shareholders reject raising royalty payout to Swiss parent company

Majority of shareholders of Nestle India have voted against increasing the royalty payout to Swiss parent Nestle S.A., as per the exchange filing. The shares of the company inched higher in Saturday’s special trading session in reaction to the development.

Shareholders with 57.18 per cent of the company’s shareholding voted against the resolution, according to an exchange filing by the company.

Advertisement

Almost a month ago, the Indian company had approved the hike in royalty payout to its Swiss parent company. Earlier, in 2019, Nestle India had stated that it will seek permission of its shareholders every five years to approve the royalty payments to parent company post receiving investors and proxy firm’s feedback on the issue.

The motion had proposed that Nestle India’s royalty payout would be increased to 5.25 per cent of the net sales, from the current 4.50 per cent. The ordinary resolution had sought that the royalty payments will begin from 4.5 per cent from this year onwards, and will be increased every year by 0.15 per cent. The Indian company seeked the approval for the next five year period beginning July 1, 2024.