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Sitting Fees Part of Managerial Remuneration

Ashish Maloo (Assistant Manager) (43 Points)

30 December 2009

Is Sitting Fees is part of Managerial Remuneration. I feel for non-executive it should not be include???

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4 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 30 December 2009

No Sitting Fees is not a part of Managerial Remuneration. Refer section-198(2).

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poonam verma (Company Secretary) (191 Points)
Replied 01 June 2010

Originally posted by : Ankur Garg
	No Sitting Fees is not a part of Managerial Remuneration. Refer section-198(2).

I think no sitting fees can be paid to executive directors i.e. to MD and WTD, sitting fees can only be paid to non-executive directors

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 01 June 2010

As Executive directors are generally considered as drawing managerial remuneration from the company hence they are not entitled by law for payment of sitting fee.

However as per DCA if you want to pay sitting fee to the Executive directors like MD then you may pay but that would be counted for the purpose of calculating the overall managerial remuneration limit.

Thanks

Amit Periwal (cs) (41 Points)
Replied 02 June 2010

Sitting fee paid to directors does not amount to their remuneration. new provisions in the Companies Act will come where indipendent director will be paid good amount of sitting fee.