Geetha Gupta (Director) 24 February 2020

Sitting fees for governing body members of ngo

Hi everybody,

Are governing body members of a Society registered under Societies Act entitled to Sitting Fees as in Companies Act, 2013?

If So,

what is the Cap per meeting, whether governing Body meeting or committee meeting ?
will this be counted as remuneration to the governing body member? In the NGO, the governing body members have agreed to work for no remuneration. Moreover, if siting fees is counted as remuneration, there may conflict with Service Conduct Rules as many of these people are otherwise employed.

Regards,

Geetha

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3 Replies

P. Venu (Advocate) 26 February 2020

The facts posted suggest no legal elements or lrgal issues.

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 10 March 2020

Sitting fee is kind of a reminuration otherwise there are no words like 'Standing fee' or sitting fee or sleeping fee. Fee means fee means remuneration. On the one hand such officials are claiming providing no remuneration and on the other hand are precuring the ways to get the same by change of words. This is contradictory act and condcuct and moreover against the service rules with which those Government officials are guided.

1 Like

Geetha Gupta (Director) 12 March 2020

Makkad ji,

i agree but how to reimburse travelling, boarding & lodging, local transport etc to outstations members of the governing body, when they attend the governing body meeting, if not with sitting fees?

Regards,

Geetha