09 May 2011
Whether a company can pay remuneration to a non exe director for his technical expertise under consultancy contract, apart from sitting fees for attending board meetings.
09 May 2011
As per the provisions of section 309 of the Companies Act, 1956, remuneration shall include the amount paid for any services rendered by a Director in any other capacity. However, this will not be included if the services rendered are of professional nature and in the opinion of the Central Government, the concerned Director possesses requisite qualification and experience to practice such profession.
Hence,a Non Executive Director may be paid fees for the rendered by him any other capacity other than the sitting fees and such fees shall not be included in the limit of remuneration prescribed under Section 309 ofthe Companies Act, 1956 if in the opinion of the Central Government, ur Director possesses requisite qualification and experince to practice the profession.
God Bless
CS Udit Sharma
Querist :
Anonymous
Querist :
Anonymous
(Querist)
09 May 2011
Thanks Dear... futher if the Director is relative of an Executive Director as well as hodling requisite qualification and experience then what are the compliances the company has to make.
CAclubindia
