Re-imbursement of expense of non-executive director read mo

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Can a company re-imburse a Non-Executive Director's expenses (Eg: Hotel, food, etc) which he has incurred during official work of the Company?

Does it require BOD approval or clause in AOA?

 

Note:

  1. Company is wholly-owned Subsidiary of Listed company.
  2. Director is paid sitting fees for attending BOD meeting.
Replies (3)
Reimbursing the expenses of any of its directors is managements call.
Your question should be-whether these reimbursements will form part of remuneration to the director.

Thank you Manishji. And yes. Does it add to remuneration, as he is Non-executive Director receiving sitting fees. If the total payment including Sitting fees and reimbursement, crosses Sitting fees limit prescribed, is it violation?

Sitting fees is seperate from remuneration.

Sitting fees is paid to attend a board meeting. The limit of sittign fees has been prsecribed. 

Remuneration may include reimbursements.

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