 "Nestle")
Your front page report “Nestle drops plan to pay royalty in perpetuity to Swiss parent” by Viveat Susan and Arnab Dutta (April 16) celebrates the final recognition of the rights of minority shareholders — especially in case of subsidiaries of foreign giants — something that was long overdue. The role played by the proxy advisory firms in bringing about — or rather forcing — this change, must be appreciated.
Having said that, let me hasten to add that there’s perhaps justification in payment of royalty if the Indian subsidiary is enjoying benefits of ongoing technology transfer leading to product upgradation.
