BP Directors Propose $1 billion TNK-BP Dividend

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.