Q: Describe renumeration of independent directors in a company ?

Ans: Remuneration of independent directors

It is essential that an independent director continues to remain 'independent', and hence remuneration is inconsistent with independence, barring certain conditions. An independent director shall not receive any stock option or remuneration except for attending meetings, reimbursement of expenses for participation in the meeting and may receive profits subject to the approval of shareholders. The sitting fee for independent directors shall not be less than the sitting fee payable to other directors. This was to ensure that there is no financial nexus between independent directors and the company. Equating the fee of independent directors and other directors will ensure that they do not feel they are at disadvantage. 

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