DIRECTORS SITTTING FEES

No.

Law is silent in this respect. You may consider this as a loophole.

Thanks

No, there is no limit for sitting fees in a year.

Dear Friend

Yes their is a limit for fee but as per meetings not as per year

If the company have turnover more then  or equal to Rs 50. crore or Paid up share capital and Free Reserves more then or equal to 10 crore  then maximaum Rs 20,000 per meeting.

otherwise Rs. 10,000 per meeting

or As per AOA

WHICHEVER IS LOWER you can pay the amount to Directors.

Regards

Nitin Grover

Originally posted by : Nitin Grover
	Dear Friend Yes their is a limit for fee but as per meetings not as per year If the company have turnover more then or equal to Rs 50. crore or Paid up share capital and Free Reserves more then or equal to 10 crore then maximaum Rs 20,000 per meeting. otherwise Rs. 10,000 per meeting or As per AOA WHICHEVER IS LOWER you can pay the amount to Directors. Regards Nitin Grover

Dear Nitin,

I m also agree wid u what u said... coz i have also read the same somewhere.. but I am not able to re-call where it has been written...

Can u please give me the refernce regarding the above limit of sitting fees?

Thanks

Dear Adarsh

Pls refer Section 310 point no (b)  and its applicable only for Public and its subsidiary companies including pvt ltd if subsidiary.

firstly w.e.f 15.06.1988 the fee was rs 250/- only and now w.e.f 24-7-2003 the fee is 10,000 or 20,000 (max limit) for per meeting

Regards

Nitin Grover

Dear Adarsh,

Find below the exact notification for sitting fee liits:

By Notification No. GSR 580(E), dated 24-7-2003, the government has increased the fees payable to directors of public companies and private companies which are subsidiaries of public companies for attending the Board meetings and Committee thereof w.e.f. 24-7-2003 as under:

(a) 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 the sum of twenty thousand rupees; and

(b) Other companies shall pay sitting fees not exceeding the sum of ten thousand rupees.

Regards

thanx

Thanks Nitin Ji & Ankur Ji..

Thanks Nitin