Directors Sitting fees

[pooja joshi]

Dear members,
Under which section is directors sitting fees covered? Also to whom
all can the Company pay sitting ?




Regards,
Pooja

[kameswara Rao Kappagantula]

As per the Section 198 and 309 sitting fees not covered in MR

 

as per Section 310 Proviso the Max Limits is fixed for sitting fees

 

Payment of sitting fees governed by u r AOA

 

only NED (including independent directors0 will be eligible for Sitting fees

 

Kamesh

--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com

Find eNewsletters of ICSI Mysore at: www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx

[CS Shainshad Aduvanni]

Dear Pooja,

Attached is for your reference.

Regards

--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com

Find eNewsletters of ICSI Mysore at: www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx

--

Shainshad Aduvanni
Company Secretary
Coimbatore

09841414439
0422-2434491/92/93

[Indrani Sanka]

Hi Pooja,

Is your company a private limited company or a public limited company?

If  it is a private limited company the company can pay any amount of sitting fee to the directors. there is no restriction on the same. if it is public limited company then there is a limit as said under the Companies (Central Government's) General Rules and form 1956.

Please check your article as to the procedure for payment of sitting fee. as a practice u either pass a one resolution in the board / committee meeting for fixing the sitting fee to be paid to the director for each board and committee meetings. and to pass subsequent resolution when ever there is a revision of the amount. or to pass an open resolution for paying the sitting fee.

Thanks,

Indrani

[pooja joshi]

Thanku sirs, for ur reply.
Is it mandatory that d sitting fees is paid only to NED even when the
AOA states that sitting fees will b paid to directors who attend the
meetings. Also AOA of my Co. states that directors will be remunerated
in addition to sitting fees.

Regards,
Pooja

On Wed, Aug 29, 2012 at 11:56 AM, CS Shainshad Aduvanni
<csupt...@gmail.com> wrote:

[Indrani Sanka]

Hi,

U can pay sitting fee to any one it does not matter. and when ur articles permits the same there is no issues in it.

Thanks,

Indrani

[pooja joshi]

Thanku Mam, Its a unlisted public co

[Indrani Sanka]

K. just be conscious on the maximum that you pay is within the limits.

[pooja joshi]

Thanku so much Mam

Mam, Its a unlisted public Co.

[kameswara Rao Kappagantula]

in case of Public Company u do not pay sitting fees to ED

 

 

Kamesh

[pooja joshi]

Cud u pls tel me the section which states that in public co sitting
fees is not paid to ED?

[kameswara Rao Kappagantula]

As per my knowledge ED Like MD WTD do no0t eligible for Sitting Fees u may have look on some of MD aand WTD Agrrements.

 

Kamkesh

[kameswara Rao Kappagantula]

earlier department clarified that ED who are drawing MR from Company are not eligible to gwt Sitting Fees and if they get the same is included in their MR. i for get the date of that circular or notification i rember this as i read in my student days of CS.

 

 

 

Kamesh

[Indrani Sanka]

Respected Sir,

To my knowledge sitting fee can be paid to executive directors just that it forms part of the remuneration. As a practice the WTD and the MD is not paid sitting fee. However the act does not prohibit in paying sitting fee to them.

[kameswara Rao Kappagantula]

i agree

 

But department clarification to be followed.... they clarified it is included....and if we pay the ceiling of Mr increased and the limits we get from shareholders exceeded.

 

so in practice ED not get Sitting fees

 

Kamesh

[CA Mahendra]

Ya I do agree with Mr kameshwar rao ...generally companies are not paying any sitting fees to MD & ED in practice ...
Other view solicitated

[pooja joshi]

Practice is fine sir. I wanted to know whether the law forbids?

regards,
Pooja

[kameswara Rao Kappagantula]

law not forbis but u need to take care of MR limits including Sitting fees and fix salary accordingly...........

 

ED are employees of the Company and they have an aobligation to attned meeting and getting Salary and sitting fees is not good....

 

for NED the sitting fees are bread winner

 

Kamesh

[pooja joshi]

Sir, if the sitting fees including the remuneration is within the limits then??

On Fri, Aug 31, 2012 at 12:24 PM, kameswara Rao Kappagantula

[kameswara Rao Kappagantula]

then it is ok

 

Kamesh

[pooja joshi]

thank you so much sir for ur reply.

On Fri, Aug 31, 2012 at 12:29 PM, kameswara Rao Kappagantula