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Petronet Seeks Shareholder Approval to Extend Director Commission for Five Years
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News18•27-09-2026, 11:45
Petronet Seeks Shareholder Approval to Extend Director Commission for Five Years
- •Petronet LNG Ltd, India’s largest gas importer, is seeking shareholder approval to continue paying directors a commission capped at 1% of annual profits for another five years, from FY2026-27 to FY2030-31.
- •The proposal, outlined in the notice for the company’s general meeting, seeks approval for distributing up to 1% of profits, calculated under Section 198 of the Companies Act, 2013, among directors.
- •Shareholders previously approved this commission arrangement in September 2021 for FY2022 to FY2026, with similar approvals granted in 2007, 2011, and 2016.
- •For FY2025-26, CEO Akshay Kumar Singh and other whole-time directors received a commission of Rs 26.5 lakh each, contributing to Singh's total remuneration of Rs 3.64 crore.
- •Independent directors also received Rs 10 lakh each as commission on profit, in addition to sitting fees, with the actual commissions paid remaining well below the statutory ceiling.
Key Questions Answered
Petronet LNG is seeking shareholder approval to continue paying its directors a commission capped at 1 percent of annual profits for another five-year period from the 2026-27 to 2030-31 financial years.
For the fiscal year ended March 31, 2026, Petronet reported a net profit of Rs 3,843 crore on a revenue of Rs 43,495 crore.
State-owned Indian Oil Corporation, GAIL India, Oil and Natural Gas Corp, and Bharat Petroleum Corporation each hold a 12.5 percent stake in Petronet LNG.