Subhash Bhaskar

As per sec. 149(1) of the Companies Act, 2013 "every company shall have board of directors consisting of individuals as directors". According to this section only individuals can be appointed as directors to the board of directors of company. The company paying sitting fee to directors must have appointed individual as independent director nor firm. Hence the sitting fee must be paid to individual director not to firm. However the company may pay sitting fee to any other person on behalf of director. Any other person may be friend, relative or even firm. The following entry shall be passed in this case. Sitting fee to directors A/c Dr. Bank A/c Cr. Narration : The sitting fee paid to Mr/firm (name) on behalf of director (name) As a caution there must be a receiving from director to the effect that the sitting fee has been paid to some other person on his behalf.