Mrs.n (CS, LL.B ) (407 Points)
24 August 2012Hi,
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
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
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.
Tanveer Md Masood
(Indispensable)
(361 Points)
Replied 25 August 2012
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