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.
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