Directors service agreement
Linder Myers highly recommends that companies have a properly drafted directors service agreement in place to protect their business in the future.
The contract enables you to clarify the relationship between the director and the company, while outlining their duties and responsibilities, helping to prevent any conflicts of interest further down the line. Our employment law team can provide you with valuable legal assistance when constructing an agreement, assuring that it meets the requirements of both parties.
Your legal obligation
Some companies are unaware that they are legally required to provide directors with a contract of employment, and this ignorance can have serious consequences.
Businesses must have a written service contract in existence. A directors service agreement simply needs to outline the services and duties to be performed and completed by the director. However, many organisations look to put a more complex document in place, giving them an opportunity to cover a wide variety of issues and effectively safeguard themselves against future problems.
Linder Myers - your trusted advisor
So that your business interests are protected against directors who could damage you financially or otherwise if and when they leave, our employment solicitors offer guidance on setting up the right directors service agreement to help you avoid possible problems, and can also represent you in court should an issue arise.
Proven experience in director's service agreements
With extensive experience of litigation arising out of disputes in this area, and with access to the most up to date legal precedents and materials, our knowledge and expertise is invaluable in helping you to avoid the many pitfalls that can arise when drafting or negotiating directors service contract.
We can help put together the most comprehensive and effective directors service agreement, which are absolutely essential when employing a director and influential senior level employees in a limited company.
Providing expert advice from the outset, we ensure that proper consideration is given to matters that will have a material effect on the drafting of directors service agreements. Typically, these should include provisions in relation to the following:
- A clause to protect confidential information and intellectual property belonging to the company.
- Restrictive covenants to protect your goodwill and business interests.
- Clauses to give the company the ability to place a director on garden leave or make a lawful payment in lieu of notice.
- Provisions as to how a director’s legal position at Companies House should be dealt with on termination of employment.
- A clear definition of a director’s duties and responsibilities to the company.
- Adequate clauses dealing with such matters as company cars, pensions and fringe benefits such as medical insurance.
For further information about setting up a directors service agreement with the assistance of Linder Myers employment law solicitors, contact our legal team on 0844 984 6444.
Disclaimer: The information provided was correct at the time of writing but may have undergone changes following this point.