directors- sec 309(1)

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This query is : Resolved

Dipneet Kaur (Querist)

16 November 2009 while determining remuneration of directors as per provisions of this sec, it is said that it shall b inclusive of any remuneration payable to the directors for services rendered in any other capacity,provided that it shall b otherwise, if servises are of professional nature and in opinion of CG director has requisite professional qualification..

i want to plz clear me abt the relevance of the word "rendered" as services rendered are different from services supplied..will it be exclusive of retainership.

can u give me examples of the cases in which a director's remuneration shall be inclusive of that in any other capacity.

Sathyaram

Sathyaram (Expert)

16 November 2009 Hi,

It this statements it specifies the word "rendered" as executive director or non-executive director.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)

16 November 2009 yes, there are difference between service rendered and service supplied.
Directors are mind of the company they are internal persons, so they service rendered(Responsblity). service supplied by outsiders of co.

Ankur Garg

Ankur Garg (Expert)

17 November 2009 As per my opinion services on retainership basis are outside the preview of the relaxation provided in proviso to section 309(1) and hence part of remuneration.

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