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Sitting fees to Director

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Chaitanya Udgirkar

43 Points Posted on 27 June 2020

what is the maximum amount which can be paid to a Director as sitting fees ? for a Private limited

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Quick Summary

This discussion clarifies the maximum sitting fees payable to directors in a private limited company. According to the Companies Act 2013, directors can receive up to £1 lakh per meeting. It's also noted that independent directors should receive at least the same sitting fee as other directors, and executive directors are not typically paid sitting fees.

CA Sunil Kumar

Chartered Accountant

4524 Points Posted on 27 June 2020

As per the provisions of Section 197(5) of the Companies Act 2013, read with rule 4 of appointment and remuneration of mangerial personnel rules, a Company may pay sitting fees to executive or non executive director. But maximum fees payable to such director shall not exceed Rupees one lakh per meeting. However sitting fees paid for attending Board meeting to independent Director shall not be less than the other directors.