DCA holds meet on remuneration of directors

NEW DELHI: The Department of Company Affairs will firm up its views on enhancement in remuneration of company directors. A meeting chaired by DCA secretary VK Dhall discussed advisability of enhancing the remuneration package of directors by way of enhanced limits for sitting fee and commission, besides enhancing the quality of Directors responsibility statement, an official release said here on Thursday. The meeting was attended by the representatives of Sebi, professional instititues and industry chambers. The other issues discussed included the functioning of the audit companies and developing a comprehensive framework for ensuring and promoting good corporate governance. The focus areas of discussion were interface between audit committee and the Board of Directors, the binding nature of audit committee''s recommendations on the board of directors and the need for maintaining the supremacy of the boards. Based on the suggestions made by Kumaramangalam Birla committee on corporate governance, the Sebi made it mandatory for listed companies to have independent audit committees. The issues relating to the need for giving immunity to independent directors in the audit committee on the lines of nominee directors of financial institutions were discussed at length, it said. Deliberations included the need for confining the proceedings against Directors with reference to definition of ''officers in default'' under Section 5 of the Companies Act.