Sitting Fees to Directors Section 197(5)

A director may receive remuneration by way of fee for attending meetings of the Board or Committee thereof or for any other purpose whatsoever as may be decided by the Board subject to the conditions imposed by Rule 4 of the Companies (Appointment and Remuneration of Managerial personnel) Rules, 2014 as under:

• The sitting fees shall not exceed one lakh rupees per meeting of the Board or committee thereof. [As per Rule 4]
• The sitting fee payable to the Independent Directors and Women Directors shall not be less than that payable to other directors. [As per Proviso to Rule 4]
Note: According to Section 197 (2), the percentages mentioned under Section 197 (1) shall be exclusive of any sitting fees payable to directors for attending meetings of the Board or committee thereof or for any other purpose whatsoever as may be decided by the Board.

The scale of fees may differ: Different fees for different classes of companies and fees in respect to independent directors may be such as may be prescribed

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

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