GENERAL27 Sept 2026
Petronet to pay 1% of profit as commission to its directors for 5 years
Petronet LNG, India's biggest gas importer, wants shareholders to approve paying its directors a commission of up to 1 per cent of yearly profits for five more years, from financial year 2026-27 to 2030-31. This affects the company's directors and its shareholders, who vote on it at the coming general meeting. The pay stays within the Companies Act limits, so most taxpayers need do nothing.
Key Statutory Highlights
- Petronet LNG has sought shareholders' approval to continue paying its directors a commission capped at 1 per cent of annual profits for five years, from FY 2026-27 to 2030-31.
- The commission is a sum not exceeding 1 per cent per annum of profits calculated under Section 198 of the Companies Act, 2013.
- For the year ended March 31, 2026, Petronet paid its CEO and other directors a commission of Rs 26.5 lakh each, and reported a net profit of Rs 3,843 crore.
Actionable Advice for Taxpayers / Founders:If you hold Petronet LNG shares, go through the general meeting notice and cast your vote on the commission proposal, since shareholder approval is what allows the payment to continue.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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