Accepting non executive professional directorship in pvt co.

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RRRRR (Querist)
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08 April 2014 Can a Chartered Accountant in whole time practice accept an appointment as NON EXECUTIVE PROFESSIONAL DIRECTOR in a PRIVATE LIMITED COMPANY and draw consultation fee on monthly basis from that company? Any regulatory conditions imposed Under Managerial Remuneration or other Provisions of the NEW COMPANIES ACT 2013 or Under Professional Ethics Code of the ICAI in this situation?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 April 2014 you can only be a director simplicitor. nothing except the sitting fees is allowed.

RRRRR

RRRRR (Querist)
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09 April 2014 Thanks Nikhil for giving your input. It would be helpful if you could please clarify with direct sections from the New Companies Act or CA Professional Code. Because in case of PUBLIC limited Companies, there was a proviso to section 309(1) of old companies Act which allowed payment to professionals and Section 309(4) allowed payment on the basis of monthly, quarterly or yearly basis. However these sections were not applicable to private limited companies. I want the clarity on the topic under new Companies Act 2013 and Professional Code with provisions....Thanks!

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