Sitting Fee

1656 views 2 replies

The AOA interalia provides the followings:

"The Directors shall be paid Rs---------------as sitting fee for each meeting of the Board or Committee thereof."

 

But the Co is not paying sitting fee to its directors and all are promoters directors.

How can we get the rid of non-compliance ?

As per me, we can take the waiver letter from each director and make a note in the BM and later on alter the AoA giving power to board to pay such fee as they may think fit subject to the limit fixed by the Act.

 

Am i right ? Any other option ?

Replies (2)
Originally posted by : Santosh

The AOA interalia provides the followings:

"The Directors shall be paid Rs---------------as sitting fee for each meeting of the Board or Committee thereof."

 

But the Co is not paying sitting fee to its directors and all are promoters directors.

How can we get the rid of non-compliance ?

As per me, we can take the waiver letter from each director and make a note in the BM and later on alter the AoA giving power to board to pay such fee as they may think fit subject to the limit fixed by the Act.

 

Am i right ? Any other option ?

 Dear Santosh.

Please specify whether the promoter Directors are in Executive capacity or in Non Executive capacity.

Coz: If they are in Executive capacity than they are not eligible for sitting fees.

Other wise waiver letter will serve the purpose.

Other views solicited.

 

 

 

 

 

True

 

Waiver letter will surely serve the purpose.

Would also advise you to amend your atricles and modify or remove this sitting fees clause.

 

Regards

RG

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