Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

DIRECTORS SITTTING FEES

Omkar Mhamunkar (Practising Company Secretary) (39 Points)

16 April 2010

IS THERE ANY MAXIMUM LIMIT OF SITTING FEES IN A YEAR PROVIDED

Reply
Follow
Share

9 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 16 April 2010

No.

Law is silent in this respect. You may consider this as a loophole.

Thanks

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CS Snehal (Compliance Manager) (346 Points)
Replied 16 April 2010

No, there is no limit for sitting fees in a year.

Nitin Grover (CS) (1228 Points)
Replied 16 April 2010

Dear Friend

Yes their is a limit for fee but as per meetings not as per year

If the company have turnover more then or equal to Rs 50. crore or Paid up share capital and Free Reserves more then or equal to 10 crore then maximaum Rs 20,000 per meeting.

otherwise Rs. 10,000 per meeting

or As per AOA

WHICHEVER IS LOWER you can pay the amount to Directors.

Regards

Nitin Grover

2 Like

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 16 April 2010

Originally posted by : Nitin Grover
	Dear Friend Yes their is a limit for fee but as per meetings not as per year If the company have turnover more then or equal to Rs 50. crore or Paid up share capital and Free Reserves more then or equal to 10 crore then maximaum Rs 20,000 per meeting. otherwise Rs. 10,000 per meeting or As per AOA WHICHEVER IS LOWER you can pay the amount to Directors. Regards Nitin Grover

Dear Nitin,

I m also agree wid u what u said... coz i have also read the same somewhere.. but I am not able to re-call where it has been written...

Can u please give me the refernce regarding the above limit of sitting fees?

Thanks

Nitin Grover (CS) (1228 Points)
Replied 16 April 2010

Dear Adarsh

Pls refer Section 310 point no (b) and its applicable only for Public and its subsidiary companies including pvt ltd if subsidiary.

firstly w.e.f 15.06.1988 the fee was rs 250/- only and now w.e.f 24-7-2003 the fee is 10,000 or 20,000 (max limit) for per meeting

Regards

Nitin Grover

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 16 April 2010

Dear Adarsh,

Find below the exact notification for sitting fee liits:

By Notification No. GSR 580(E), dated 24-7-2003, the government has increased the fees payable to directors of public companies and private companies which are subsidiaries of public companies for attending the Board meetings and Committee thereof w.e.f. 24-7-2003 as under:

(a) Companies with a paid-up share capital and free reserves of Rs. 10 crore and above or turnover of Rs. 50 crore and above shall be paid sitting fees not exceeding the sum of twenty thousand rupees; and

(b) Other companies shall pay sitting fees not exceeding the sum of ten thousand rupees.

Regards