07 December 2011
Please let me know whether Independent Director who attends AGM or EGM is entitled to Sitting Fees which is normally paid to him for attending Board Meetings or Meetings of any Committees thereof?
07 December 2011
In law there is no provision for payment of sitting fee to directors for attending GM bcoz attending GM is the right of shareholders. I would advise you to drop the idea of paying SF for attending GM as it may considered as mela fide use of company fund.
The directors are allowed to receive sitting fees for each meeting of the Board or a committee thereof attended by them. The sitting fees payable by public companies and private companies subsidiary to public companies to their directors for attending the Board meeting or committee thereof has been revised w.e.f 24th July, 2003. The directors of companies with a paid-up share capital and free reserves of Rs. 10 crore and above or turnover of Rs. 50 crore and above shall be paid sitting fees not exceeding Rs. 20,000 and directors of other companies will be paid sitting fees not exceeding Rs. 10,000.
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