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Sitting Fee to MD/WTD

Arvind Sharma (ACA) (1432 Points)

07 October 2010

As per Sec 309, Sitting Fee shall not exceeds ` 20000/10000.

my query is that whether in the following case CG approval is required..??

Provision for Sitting Fee Rs. 25000

Sitting Fee paid Rs. 10000

Rs. 15000 was written back....??

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6 Replies

Ajay Mishra (Company Secretary) (74332 Points)
Replied 07 October 2010

The payment of sitting fee is governed by the articles of association of the company, the policy in this regard and the limit prescribed in Rule 10B of the Companies General Rules and Forms, 1956 which is as under:

a) In case of the companies with a paid up capital and free reserve of Rs. 10 crore and above or turnover of Rs. 50 crore and above, sitting fee payable not to exceed Rs. 20,000.

b) In the case of other companies sitting fee payable not to exceed Rs. 10,000.

As per the first proviso to section 310, sitting fee payable to a director may be increased with the approval of CG.

A company can pay sitting fees in excess of the limit fixed under rule 10B of the Companies General Rules and Forms, 1956, provide it amend its articles and the same is approved by the CG under section 310.

Regards

Arvind Sharma (ACA) (1432 Points)
Replied 07 October 2010

Thanks for the info, but I think, its not ans to my qus..

Plz reply to my qus......

Ajay Mishra (Company Secretary) (74332 Points)
Replied 07 October 2010

Dear Mr. Arvind

Please clearly mention your query........... and specify hou much you have paid to your director as sitting fee.

Regards

Arvind Sharma (ACA) (1432 Points)
Replied 07 October 2010

Although I have clearly mentioned, any how I am again repeating...

Provision for Payment by Rs. 25000

but paid only Rs. 10000 as Sitting Fee and

balance Rs. 15000 was written back...

Ajay Mishra (Company Secretary) (74332 Points)
Replied 07 October 2010

Provisions for payment of sitting fee is Rs. 25000, it means you have already got CG approval and made alteration in AOA to five such sitting fee, right,

If you have paid only Rs. 10000as sitting fee and balance of Rs. 15,000 was written back , it means you have only paid Rs. 10,000 as sitting fee. In this i think there is no need to take CG approval for such payment.

Ohter views are also solicited.

Regards