Sitting fees payable to director

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CS Mitesh Mehta (Querist)
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12 October 2009 Dear All,

My Query is;

If a director of holding company is appointed as a representative director in Subisidiary. And Director is paid a sitting fees in subsidiary company.

whether director is entitled for that sitting fees or Holding company to whom he is representing?

please answer my query.

Ankur Garg

Ankur Garg (Expert)
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12 October 2009 Hi,

As per my understanding sitting fee is not a part of managerial remuneration. Refer section 198(2) read with 309(2).

In your case director is entitled to sitting fee.

Regards