sitting fees

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2010 Sitting fees is payable to all directors -Executive,non executive,Chairman & Managing Director?
or only to non executive is allowed?

udit sharma

udit sharma (Expert)

20 December 2010 As per section 309(2) of the Companies Act,1956 Sitting fees is payable to all Directors, there is no restriction under the Companies Act, 1956 that Sitting fees can be paid to only Non-Executive Directors and not to Executive Directors. However, if the Articles of the Company or reolution passed by the shareholders or the terms of the contract entered into with an Executive Director provides that he shall not be entitled to payment of Sitting fees, then he shall not be so entitled.

God Bless

Udit Sharma

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2010 But A managing director or wholetime director who is getting remuneration as per schedule
XIII, is not entitled to sitting fee - Department letter dated 18-8-1990. Even if sitting fee is
paid, it will be treated as 'other allowance' and overall limit on salary will be
subject to limit of managerial remuneration specified in schedule XIII.
So pls confirm whether MD is entitled to sitting fees

Ankur Garg

Ankur Garg (Expert)

21 December 2010 Agree with Udit

As per DCA Clarification sitting fee is not payable to MD as managing and attending the meeting is the duty of MD so MD is not entitled for sitting fee.

However if fee is paid to MD than the same would be counted in the overall limit of managerial remuneration.

Regards

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