Moscow, July 21, 2012 - BP has proposed the payment of a $1bn dividend by TNK-BP. The proposal was made prior to the first Board discussion of 2012. This would be the first TNK-BP dividend attributable to 2012 income.
The Board remains inquorate since the resignation of two of the three independent directors last year. With only ten members, and still lacking a third independent director, the Board does not have the quorum to take a whole range of important company decisions, such as minimum quarterly dividends (40% of company net income), management board appointments and strategic transactions above $100m.
With only ten members, the Board is able to make a decision on so-called additional, or interim, dividends, which require the unanimous approval of all members. AAR directors agreed to study BP’s proposal and make a decision during the course of the coming week.
Last year BP paid out $4.1bn in dividends. Of this amount, dividends from TNK-BP accounted for $3.7bn, or more than 90% of BP’s total payout to shareholders
Yesterday’s teleconference discussion was the first time the TNK-BP Board has met since 9 December 2011.
The next TNK-BP Board meeting is scheduled for October 2012. At present, there remain doubts as to whether it will meet as the search for the third independent director has not yet commenced.
The last sentence of TNK-BP looks strange.
When shareholders will find the third independent director, if it is so important for decision-making?
Curiously, when created TNK-BP, it was planned that BP will bring new technologies and the vision of the oil and gas sector in the future.
However, life and business in Russia led to a completely different result.
Russian business has taught the company BP to work in Russia under the Russian rules.
Caring for the development of technology receded into the background, feuds with AAP BP was forced to make a decision to withdraw from the business of Th-BP.
BP is trying to get out of TNK-BP, with maximum benefit, obviously, concerned about the shareholders.