Nestle India shareholders vote against increase in royalty to Swiss parent

MUMBAI:

Shareholders

in

Nestle India

have rejected a company proposal to increase

royalty

payments to its

Swiss parent

Nestle, the company said late on Friday.
The motion called for the royalty paid to its parent to climb to 5.25% of net sales, net of taxes, compared to the current level of 4.5%. The

increase

was proposed at a rate of 0.15% per annum.

About 70.8% of public shareholders voted against the increase, a filing showed.
Under Indian regulations, the potential change would be classified as a related party transaction, which means that controlling shareholders were not allowed to

vote

.
The company did not say whether it intends to review the proposal.