Company law

Dear Lakshmi,

Remuneration to MD of a public company is provided by the articles of association and approval of shareholders meeting subject to maximum provided in sec.198, and regulated by section 198, 310,311 and 387 and schedule XIII of the companies act.

As such there must be either an agreement between the company and the managing director and it may include sitting fee in addition to periodical payment of salary provided there is such clause incorporated in AOA.