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Sitting fees for board meeting

pawan (Student CA Final ) (35 Points)

18 April 2014

What is the minimun amount for sitting fees for non-executive directors???Is it possible that nothing is paid as sitting fgees....in my client's company no sitting fees is being paid to non-executive directors for attending board meeting...plaese suggest me..revert back ASAP.

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11 Replies

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 18 April 2014

Sitting fess is paid to Ordineary Director i.e other than Whole time director and Managing Directer of the company.

Case- I- Where Paid up capital and Free reserve is Rs. 10 Cr.----------Rs. 20000(Per Director ) Max.

Case- II- in other case Max- Rs. 10000. may be paid.

Refered section 309 of Compnaies Act 1956.

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Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 18 April 2014

The same has been increased to Rs. 1 lakh per meeting by section 197 (5) of the Companies Act, 2013.

1 Like

JATIN SEHGAL (PRACTICING CHARTERED ACCOUNTANT) (37 Points)
Replied 18 April 2014

Besides this sitting fee payable to independent directors can not be less than that being drawn by other directors.

1 Like

pawan (Student CA Final ) (35 Points)
Replied 18 April 2014

If no sitting is being paid to any director...then..???it is right on company's part to not pay any sitting fees...??

Mahesh (CA Student) (338 Points)
Replied 18 April 2014

As per Case - I - If the turnover of The Company is Rs 50 Crores or More then also Company have to pay Rs. 20000 (Max) and Other companies shall pay sitting fees not exceeding the sum of ten thousand rupees.

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CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 19 April 2014

For Minimum limit There is no such limit have been prescribed in Company act, hence its subject to the clarification in Article of company but what ever condition is provied in AOA shall be subject to the provision in company act.

1 Like

pawan (Student CA Final ) (35 Points)
Replied 19 April 2014

As per articles sitting fees will be paid as per the provisions of the act abd as decided by board...nothing has been prescribed by board..so wat shud be done..??

Vivek Bhasin (GM (Accts and Admin)) (78 Points)
Replied 19 April 2014

Payment of sitting fees is not mandatory on the company.

Huzefa Ali Manager (cs final) (28 Points)
Replied 20 April 2014

Sitting fees is always mentioned in articles and if articlea provide for no sitting fees than company is nt liable to oay it

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 20 April 2014

If nothing is defined in the AOA then company does not require to be paid ...hoever if company wants to pay then they require to first inclusion of provision in the AOA then accordingly then can pay the same.