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

Sitting fees

Mrs.n (CS, LL.B ) (407 Points)

24 August 2012

Hi,

is it mandatory to pay Sitting fees to directors ? (in all companies pvt, unlisted pub and listed co)

I mean can we pay the same amount as conveyance .( it is necessary to give heading sitting fees on payment to directors)

pls suggest.

Regds

Joshi

Reply
Follow
Share

4 Replies

Tanveer Md Masood (Indispensable) (361 Points)
Replied 24 August 2012

DEAR MS.JOSHI,

I THINK YOU HAVE COMPLETELY MESSED UP WITH THE CONCEPT OF SITTING FEES AND CONVEYANCE. DEPARTMENT OF COMPANY AFFAIRS STATES THAT SITTING FEES SHOULD BE PAID TO PART TIME DIRECTORS AND NON-EXECUTIVE DIRECTORS WHO ARE NOT WHOLETIME DIRECTOR OR MANAGING DIRECTOR OF THE COMPANY. THEY WOULD BE ENTITLED TO SITTING FEES OF 20K IN CASE THE PAID UP SHARE CAPITAL OF THE CO. IS 50 CRORE. THIS SITTING FEES SHOULD BE PAID FOR ATTENDING THE BM OR GM .

REGARDS..

TANVEER

Upgrade to CAclubindia Pro. Subscribe Now!

Mrs.n (CS, LL.B ) (407 Points)
Replied 25 August 2012

Hi,

Thanks for the reply.i understand what you are saying.my query is sitting fees is mandatory to pay ?

is it mandatory in companies act to pay sitting fees.?? what you are stating is correct it is the limit given as per capital.but it does not say that compulsarily you have topay.

pls suggest.

(Guest)

It is not compulsory to pay sitting fees.

Tanveer Md Masood (Indispensable) (361 Points)
Replied 25 August 2012

Payment of sitting fees depends on whether there is such clause in the articles of the company and that the company has appointed non-executive director and part time directors. there is no such section or clause or provision in the companies act which prohibts the payment of sitting fees. REGARDS, TANVEER.