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Increase in sitting fees

CS Pooja (Company Secretary) (305 Points)

11 February 2011

What is the procedure for increase in sitting fees of directors within the prescribed limits?

Regards,

Pooja

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10 Replies

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 11 February 2011

If you want to increase the Directors Sitting fees within the pescribed limits.

Just pass a board resolution nothing else required.

But the increase must be in accordance with the Articles of hte company.

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Simranjeet Singh (Proprietor at S Simranjeet & Associates Company Secretaries) (4396 Points)
Replied 11 February 2011

Hii check this file it may help you........... but this is for increase beyond limit.......

Attached File : 56 56 remuneration.doc downloaded: 1584 times

CS Pooja (Company Secretary) (305 Points)
Replied 11 February 2011

The remuneration of a director or any community of the Board, for each meeting of the Board, attended by him as director, shall not exceed the limits prescribed under the Act, and shall be determined by the board from time to time, subject to such limits, may determine from time to time, The Directors may also be reimbursed all travelling , hotel and other expenses (a) for attending the meeting of the Board or (b) in connection with the business of the Company.

These are the provisions of Artices.

It was informed to the Board that in pursuance of the provisions of the Companies Act, 1956, the Company could pay remuneration to directors of a company by way of sitting fees for attending the Board Meetings of the company. After discussion, it was -

"RESOLVED THAT until otherwise decided no sitting fees will be payable to the Directors of the Company for attending the Board Meeting."

This was the noting in earlier minutes.

can any one provide me the resolution for increase in sitting fees.?

Simranjeet Singh (Proprietor at S Simranjeet & Associates Company Secretaries) (4396 Points)
Replied 11 February 2011

Hii check this link

/experts/resolution-for-increase-in-director-remuneration-543095.asp

CS Pooja (Company Secretary) (305 Points)
Replied 11 February 2011

I want resolution for increase in sitting fees and not increase in remuneration.

Thanking in anticipation.

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chandan ghosh (none) (196 Points)
Replied 11 February 2011

https://www.infodriveservices.com/docs/NOTICE_FOR_20th_AGM_INFO-DRIVE.pdf

this might help....srry if it doesn't....

Simranjeet Singh (Proprietor at S Simranjeet & Associates Company Secretaries) (4396 Points)
Replied 11 February 2011

sorry mam i tried my best to find out what you are looking for..... but unable to find it...........

pls post this in experts section as well...... may be you get a satisfactory reply there..............

nikhil ((CA Final) Article) (363 Points)
Replied 11 February 2011

as per my point of view .....should pass ordinary ressoluation in general meeting ....

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 12 February 2011

No approval of Central Government will be required for an increase in the amount of sitting fee so long as such increase is within the limits prescribed by the Government.

By Notification no. GSR 580(E), datred 24/07/2003, the government has increased the fee payable to directors of public ocmpanies and private companies which are subsidiaries of public company for attending the Board meetings and committee thereof w.e.f. 24/07/2003 as under:-

(a) Companies with a paid-up capital and free reserves of Rs. 10 crores and above or turnover of Rs. 50 crore and above shall be paid sitting fee not exceeding the sum of Rs. 20,000/-

(b) other companies shall pay sittin fee not excdeeding the sum of Rs. 10,000/-.

The Articles shall contain a provision authorising payment of sitting fee to directors. Where the articles provide that sitting fee to directors may be paid in conformity with the provision of the Companies Act, 1956 as may be applicable from time to time, then the Board of the said company can increase the sitting fee on the basis of the provision in the said rules from time to time.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 12 February 2011

DRAFT BOARD RESOLUTION

“RESOLVED THAT pursuant to the provisions of Article no. .... of the Articles of Association of the Company and applicable provisions of the Companies Act, 1956, the sitting fees to be paid to each non executive directors for attending the meeting of the Board be and is hereby increased and fixed at a sum of Rs. ............/-(Rupees ..............................only) w.e.f. the present Board Meeting.”