Professionally drafted director service agreements
Director service agreements are an essential part of a successful director relationship with a company, setting out the director’s obligations and responsibilities (both statutory and otherwise) and the company’s expectations. Our expert corporate and commercial solicitors have considerable expertise and experience of drafting director service agreements for a multitude of different situations.
Why is a director service agreement important?
First and foremost, ensuring all your directors have comprehensive director service agreements is good practice and sets the relationship up for success. The agreement should ensure all involved have a clear idea of their responsibilities and how to carry them out. Should something go wrong in the relationship, a clearly drafted agreement should reduce any ambiguity about who was right or wrong and provide a clear framework for resolution of the dispute.
When is a director service agreement necessary?
Any director should have a director service agreement and you may need different agreements in respect of executive directors who are subject to additional regulatory obligations . The agreement should also take into account that some directors may also be both an employee and shareholder as well as a director. For non-executive directors, you will normally need a Letter of Appointment which our team also have experience of preparing.
What should be included in a director service agreement?
There is no one size fits all for director service agreements and they should be carefully drafted to make sure they reflect the unique nuances of the relationship. In broad terms they should deal with:
- A director’s remuneration
- Fiduciary and legal responsibilities
- Company expectations
- Protection of confidential information, intellectual property, personal data, customer lists and technical information
- Restrictive covenants
- Notice periods, exit and /or retirement (particularly in respect of any KPIs and or any shareholding)
- Disciplinary matters and disputes
A director service agreement should also be drafted so that it is aligned with the company’s articles of association, policies, staff handbooks, and other agreements.
Experienced in drafting directors service agreements across different sectors
Our experienced team has worked across multiple sectors:
- Financial services
- Professional services
- Leisure
- Retail
- Property
- Medical
RSW Law also has an experienced employment team and work with both directors and companies meaning they can provide a comprehensive service.
Speak with a member of our team London based directors service agreement solicitor
If you require an expertly drafted directors service agreement, contact us today. Our team is ready to help.
Or visit Corporate & Commercial Law and Employment Law to learn more about our services.
