Dear All,
If an Independant director receives consultation fees from the Company (which is a Public Listed Company) apart from sitting fees, will he be treated as Direcotor but not as Indepdent Director...???
What about if all the shareholders give their consent in General Meeting for the services rendered to the Company and receives directly or indirectly fees from the Company..??
I dont think receiving consultation fees by independent director change its status from independent to dependent.
Independent director means a director who dont have any interest in the company apart from receiving remuneration.
So, as per me, independent director will remain independent.
If the fees is given his terms of appointment as remuneration then it can be paid otherwise the payment would be covered under section 314 and special resolution is to be passed for the same.
O P Bagla & Co LLP
New Delhi
CA Inter
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