Royalty Raj: HUL reopens Pandora's Box
The Morning Brief
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Is the Increase in Royalty a Corporate Governance Concern?
Tata has went to the shareholders out of abundant caution. Does increase in royalty become a corporate governance concern? I don't think so because you're charging for some specified services and the board is free to inquire and understand what those services are, he says. Has this stock market overreacted to HUL increasing its royalty? "I think it's perhaps a one-sided or a little bit short-sighted view," Tata adds.
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