What is the minimun amount for sitting fees for non-executive directors???Is it possible that nothing is paid as sitting fgees....in my client's company no sitting fees is being paid to non-executive directors for attending board meeting...plaese suggest me..revert back ASAP.
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Sitting fees for board meeting
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Sitting fess is paid to Ordineary Director i.e other than Whole time director and Managing Directer of the company.
Case- I- Where Paid up capital and Free reserve is Rs. 10 Cr.----------Rs. 20000(Per Director ) Max.
Case- II- in other case Max- Rs. 10000. may be paid.
Refered section 309 of Compnaies Act 1956.
The same has been increased to Rs. 1 lakh per meeting by section 197 (5) of the Companies Act, 2013.
Besides this sitting fee payable to independent directors can not be less than that being drawn by other directors.
If no sitting is being paid to any director...then..???it is right on company's part to not pay any sitting fees...??
As per Case - I - If the turnover of The Company is Rs 50 Crores or More then also Company have to pay Rs. 20000 (Max) and Other companies shall pay sitting fees not exceeding the sum of ten thousand rupees.
For Minimum limit
There is no such limit have been prescribed in Company act, hence its subject to the clarification in Article of company but what ever condition is provied in AOA shall be subject to the provision in company act.
As per articles sitting fees will be paid as per the provisions of the act abd as decided by board...nothing has been prescribed by board..so wat shud be done..??
Payment of sitting fees is not mandatory on the company.
Sitting fees is always mentioned in articles and if articlea provide for no sitting fees than company is nt liable to oay it
If nothing is defined in the AOA then company does not require to be paid ...hoever if company wants to pay then they require to first inclusion of provision in the AOA then accordingly then can pay the same.
Thanks All,
1,So no sitting fees is payable to Wholetime working directors??
2,Sitting fees can be paid and treat as salary and deduct TDS??
3,If Last year Sitting fees not paid ,can we pay this year??
Pls clarify.
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