Payments by Volt Resources to its non-executive directors have exceeded the graphite explorer’s maximum cap by almost 100 per cent.

A gradual restructure of the Volt (ASX:VRC) board between 2016 and 2018 resulted in an “inadvertent breach”, with the company paying $291,363 in directors’ fees during the 2018 financial year — $141,363 over the $150,000 a year fee cap approved by shareholders back in 2008.

The board restructure was to ensure Volt had the right people as it transitions towards development of its Bunyu graphite project in Tanzania, the company said.

Volt will now seek shareholder approval at its upcoming annual general meeting to increase this cap to $360,000 a year — an increase of $210,000.

The company warned shareholders that a vote against the motion would impact its ability to “attract and retain suitably qualified non-executive directors in future” — including the directors it already has.

The Volt Resources (ASX:VRC) share price over the past year.
The Volt Resources (ASX:VRC) share price over the past year.

The Volt share price currently sits at 1.9c. It has traded between 1.7c and 4.8c over the past year.

Volt had cash and cash equivalents of about $2.2m at the end of June.

The company is focused on exploration and development of its Bunyu graphite project in Tanzania.

Global production of flake graphite remains a long way from meeting demand, which has increased due to its use in fire retardants and in battery technologies for the emerging electric vehicle industry.