Sitting Fees for Non Executive Directors

[harshavardhan boratti]

Dear All,

 

I need your suggestion on the following:

 

ABC Ltd., contains the below mentioned article in its AOA.

 

Article: Each Director shall be entitled to the fee of not exceeding Rs.2000 for every meeting of the Board attended by him or her.

 

Now my question is whether it is mandatory for the company to pay sitting Fees to its Non Executive Directors?

 

I am of the opinion that the said Article mentions the max limit upto which the shall not exceed and the company may or may not pay the sitting fees.

 

Suggestion invited.

 

Regards,

Harshavardhan R B

[raja karthik]

As your Article says every director is eligible non executive directors are also eligible and should be paid.

 

Regards,

Raja Karthik S.

 

[Rajesh Warrier]

 

Dear Sir,

 

In my opinion, the particular article mentions the maximum limit up to which sitting fees shall be paid. Whether to pay the same or not to pay the same is left to the Board to decide. If the Board decides to waive the sitting fees.... it can very well do so......

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Thanks
Regards
Rajesh A
Company Secretary
Kochi
Mob: 09846874314