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Sitting fess for board meetings
I need a help from your side regarding the Sitting fees to be paid to Directors of the company as per companies act 2013,My concerns is as below ,
1. What does mean the word Director ? whether all directors are eligible for sitting fees ?
2. How much to be paid ? is there any minimum or Maximum payment criteria ?
3. whether CEO of the company who is also the director of the company who is getting monthly fixed remuneration, is eligible for payment ?
4. what is over all limit or % of profit to be paid as remuneration to Managing Personal inclusive of Directors ?
5. Is there any approval requirement in AGM or From Share Holders or From Central Govt.?
Replies (2)
for Sitting fee
Section 197 (5) provides "A director may receive remuneration by way of fee for attending meetings of the Board or Committee thereof or for any other purpose whatsoever as may be decided by the Board"
As per Company (Appointment and remuneration of managerial personnel) Rule 2014 provides that
- The amount for Sitting fee shalln't exceeds One lakh rupees per meeting of the Board or committee thereof.
- Independent Directors and Women Directors, the sitting fee shall not be less than the sitting fee payable to other directors.
Sitting fee is not mandatory for the company to pay for the Meeting.
On the matter of CEO
As there is no restrictive provision in the Company Act 2013 & Rules CEO as a director is eligible for Sitting fees.
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