Sitting fee

All directors are eligible for sitting fees including MD.

A director who is not a managing director or whole-time director may be paid sitting fees. 

Section 309 (2) says directors can be paid sitting fees. It does not exclude MD / WTD from the purview of payment of sitting fees.

I agree with  Neha  that managing director can be paid sitting fees for attending board meetings of the company.So would be also the case of other directors.

To ascertain it legally one needs to go though provisions contained in section 309 of the Companies Act, 1956 read with 198 of the said Act.

Please see below link which throws light on the subject:

https://corporatelawcorpus.blogspot.in/2010/03/payment-of-sitting-fees-to-managing.html

Originally posted by : mitesh
	Against the services rendered by NEDs, the Company makes compensation by way of sitting fees.

NED are not getting sitting fees as compensation for rendering services. Rather sitting fees can be paid to all the directors irrespective of the fact whether they are MD or ordinary director for the purpose of attending the meeting of board; generally it is paid to outstation directors incl MD/ WTD.

Regards,

Neha Jain

Check your Articles of association also, what do they contain for this clause.

Section 309 (2) says directors can be paid sitting fees.

As per DCA if you want to pay sitting fee to the EDs like MD then you may pay but that would be counted for the purpose of calculating the overall managerial remuneration limit.