sitting fees to MD/WTD

No Sitting Fee can not be paid to MD and WTD. If paid than it would be counted in the overall managerial remuneration.

Normally sitting fee paid to other directors is not the part of their managerial remuneration.

Regards

A director who is not a managing or whole-time director may be paid sitting fees for attending meetings of the Board or of the committee of directors.

  
The limit of 11% of the net profits on overall maximum managerial remuneration shall be exclusive of any sitting fees payable to directors for attending each meeting of the Board or committee.

  
Sitting fees will not be included in the quantum of remuneration to decide the percentage of managerial remuneration u/s 198.

Hey frnds, tell me one thing sitting fees is not paid to MD and WTD i.e. to the executive directors. On the other hand we do not pay remuneration to non-executive directors we do pay them pay the sitting fees, then what is the relevance of question that sitting fees is or is not a part of managerail remuneration?

Originally posted by : Adarsh
	A director who is not a managing or whole-time director may be paid sitting fees for attending meetings of the Board or of the committee of directors.    The limit of 11% of the net profits on overall maximum managerial remuneration shall be exclusive of any sitting fees payable to directors for attending each meeting of the Board or committee.    Sitting fees will not be included in the quantum of remuneration to decide the percentage of managerial remuneration u/s 198.

See the point is very simple. Sitting fee to NEDs is very much allowed and not a part of managerial remuneration as NEDs are not drawing any remuneration from the company and that’s why they are NED.

On the other hand EDs are drawing managerial remuneration from the company hence they are not entitled by law for payment of sitting fee. 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.

Thanks