Appointment of Practicing CA as a Director and Remuneration

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2011 Plz .help me out
I have one private ltd. company with a paid up and authorized capital of Rs. 1,00,000/- which is engaged in the business of conducting classes for graduation course and professional course like CA and CS. Recently the company has appointed a practicing chartered accountant as a professional non executive director in that company who conducts classes for the company say for 8 hrs per day and he is also not a statutory auditor of the company. Now my questions are
1. Whether a practicing chartered accountant can be appointed as professional director in the Company?
2. Are there any ICAI guidelines with respect to appointment of practicing chartered accountant as professional director in the Company? For ex. For how much time he can work and remuneration payable to him, etc
3. If yes then the remuneration payable to him will be treated as professional fees or his salary?
4. Also can he receive the sitting fees for attending all the board meetings?
5. Also the Articles of Association states the following article with respect to Sitting Fees and Directors remuneration:
“The sitting fees payable to the Directors shall be such sum as may be fixed by the Board of Directors, not exceeding the sum fixed under Section 310 of the Act from time to time, for each meeting of the Board of Directors or Committee thereof attended by them. Additional remuneration, as may be fixed by the Company, may be paid to anyone or more of their number for services rendered by him or them and the Directors shall be paid further remuneration (if any) as the Company in general meeting shall from time to time determine.
The remuneration of the Directors including additional and alternate Directors shall, in so far as it consists of a monthly payment, be deemed to accrue from day to day.”