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ITC payment for non-exec directors

CALCUTTA: In a bid to bring the remuneration of the non-executive directors of the company in line with the current trends, and commensurate with the time devoted and the contribution made by them, the ITC board has proposed tha t they be paid for the financial year ending March 31, 2001, an amount not exceeding one per cent of the net profits of the company, as per Section 309 (4) of the Companies Act, 1956.

The amount is to be computed in the manner stipulated in Section 198 (1) of the Act, and will be in addition to the fee for attending the meetings of the board or any committee thereof, and will be divided amongst the directors as decided by the board fr om time to time. It is proposed that none of the non-executive directors shall receive individually a sum exceeding Rs. 3 lakhs. It is also proposed that these directors be paid annually for each of the two financial years of the company commencing from April 1, 2001.

At the AGM of the company, held on August 12, 1998, shareholders, inter alia, had approved payment of remuneration to non-executive directors for a period of three financial years commencing from April 1, 1998, and up to March 31, 2001. The board has als o proposed to seek shareholders' okay for payment of remuneration to non-executive directors for a further period of two years from April 1, 2001 to March 31, 2003. The proposals were approved by the board of directors at their meeting last month. -- Our Bureau