Article Summary
- Unilever Nigeria Plc declared a dividend of N1.4bn for the year ended December 31st, 2022, representing N0.25k per share.
- Mrs. Abidemi Ademola was elected as a Director of the Company, while three Directors who retired by rotation at the AGM were re-elected as Directors.
- The company also gave a general mandate authorizing it to procure goods, services, and financing from related parties or interested persons on normal commercial terms consistent with the Company’s transfer pricing policy.
Unilever Nigeria Plc held its Annual General Meeting on May 4th, 2023, where several resolutions were passed.
One of the most notable resolutions was the declaration of a dividend of N1,436,251,250 (One Billion, Four Hundred and Thirty-Six Million, Two Hundred and Fifty-One Thousand, Two Hundred and Fifty Naira) representing N0.25k per share.
This dividend will be paid to members on the register of members at the close of business on Monday, April 17th, 2023, subject to the deduction of appropriate withholding taxes and other statutory deductions for the year ending December 31st, 2022.
In addition to the dividend declaration, the meeting also saw the election of Mrs. Abidemi Ademola as a Director of the Company.
Furthermore, the following Directors who retired by rotation at the Annual General Meeting were re-elected as Directors of the Company: Mr. Jaime Aguilera, Madam Ammuna Lawan Ali, and Mr. Chika Nwobi.
In accordance with Article 74 of the Articles of Association of the Company, the remuneration of the non-Executive Directors in respect of the year ending December 31st, 2022, and until further notice, was fixed at N79.2 Million (Seventy-Nine Million and Two Hundred Thousand Naira Only) as Directors’ Fees.
Additionally, sitting allowances will be paid at standard agreed rates for each meeting attended, and the Chairman will be entitled to a vehicle allowance of N15 million gross per annum.
Related Party Transactions
Moreover, pursuant to Rule 20.8 of the Rulebook of the Nigerian Exchange Limited 2015: Issuers Rule, a general mandate was given authorizing the company during the 2023 financial year and up to the date of the next annual general meeting to procure goods, services, and financing and enter into such incidental transactions necessary for its day-to-day operations from its related parties or interested persons on normal commercial terms consistent with the Company’s transfer pricing policy.
In its financial statements for the year ended December 2022, it disclosed Unilever Nigeria Plc is controlled by Unilever Plc incorporated in the United Kingdom which is the ultimate party and controlling party of Unilever Nigeria Plc.
Trademark and technology licenses
According to the information contained in its financial statement, Unilever Plc, United Kingdom has given Unilever Nigeria Plc exclusive rights to the know-how, manufacture, distribution, and marketing of its international brands namely: Omo, Sunlight, Close-Up, Pepsodent, Vaseline, Lux, Knorr, Royco, Lipton, and Lifebuoy in Nigeria. In consideration of this, a royalty of 2% of net sales value and 0.5% of net sales value is payable by Unilever Nigeria Plc to Unilever Plc, the United Kingdom for Technology, and Trade Mark licences respectively.
Central Support and Management Services
Unilever Nigeria Plc has a Management Services Agreement with Unilever Plc, United Kingdom for the provision of corporate strategic direction, and expert advice/support on legal, tax, finance, human resources, and information technology matters.
Effective 1 June 2018, after an internal arrangement, the service provider was changed from Unilever Plc to
Unilever Europe Business Centre B.V. In consideration of this agreement, a fee of 2% of profit before tax is payable by Unilever Nigeria Plc to Unilever Plc/Unilever Europe Business Center B.V. The fee payable under this agreement in 2022 is N156 million. (2021: N41 million).
The total amount due to related parties was estimated at N11 billion as of the end of 2022 and N13 billion as of the first quarter of 2023.
All transactions falling under this category, which were earlier entered into in 2023 prior to the date of this meeting, were ratified.
