sitting fees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2011 If Sitting fees for director are not mentioned in the Articles then what is required for giving such fees both to whole time directors and independent directors

Please tell me if AGM approval is required or a mere board resolution will do as SEc 309(2) regulates such fees.

Does Sec 309(2) supersede the Articles

p.s the sitting fees is not mentioned at all in the articles.

sIR THANK YOU FOR YOUR REPLY.
Does that mean even if it is not provided in the ARticles the company can give the fees and that too is the limitof 20000 and 10000 applicable to all directors

Pravin Gupta CS

Pravin Gupta CS (Expert)
Follow

04 May 2011 Limit of siting fees payble to director;
a company having a paid-up share capital and free reserves of Rs 10 crore and above or turnover of Rs 50 crore and above can pay a sitting fee "not exceeding Rs 20,000" and in other case this limit is rs.10000/-. so upto this limit no approval of CG is required..

Currently, sitting fees is a key component of an independent director’s pay and there is a ceiling of Rs 20,000 per meeting. The ministry is now going to notify a quarterly ceiling on the overall pay of the independent directors very soon.