Hello All,
is it possible to pay sitting fees to directors beyond 1 lakh rupees , as per companies act,2013
CA Srujann kumar Reddy
(Asst Manager(Internal audit))
(1679 Points)
Replied 09 March 2018
There is no limit in companies act for sitting fee however articles of association can fix limits
ismail
(CA Final)
(72 Points)
Replied 09 March 2018
can you please elabarote lit more as i see as per sec 197, sitting fees shall not exceed 1 lakh rupees, and some saying sitting fees can be paid more than 1 lakh also
sagar parakh
(189 Points)
Replied 09 March 2018
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 07 May 2018
No, it cannot exceed Rs.1 lac as clearly provided in Rule 4 of Companies (Appointment & Remuneration of Managerial Personnel) Rules 2014.
Sitting fees
4. A company may pay a sitting fee to a director for attending meetings of the Board or committees thereof, such sum as may be decided by the Board of directors thereof which shall not exceed one lakh rupees per meeting of the Board or committee thereof:
Provided that for Independent Directors and Women Directors, the sitting fee shall not be less than the sitting fee payable to other directors.
Deepen
(Company Secretary)
(144 Points)
Replied 05 June 2018
kavita
(Company Secretary Senior Manager)
(27 Points)
Replied 24 August 2018
Is it applicable in case of Private Company also? As there are two views on applicability of Section 197 to Private Limited Company (especially when there is loss making / inadequate profit one).
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India