Payment of commission to Non-Whole time Directors

Ministry of Corporate Affairs vide General Circular No. 4/2011 dated 4th March, 2011, decided that a company shall not require approval of the Central Government for making payment of remuneration by way of commission to its Non- Whole Time Director(s) in addition to the sitting fee if the total commission to be paid to all those Non-Whole Time Directors does not exceed 1% of the net profit of the company if it has a Whole Time Director(s) or  3% of the net profit of the company if does not have a Managing Director or Whole Time Director(s).