Director’s Service Agreements

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Legal support with Director’s Service Agreements

Director’s Service Agreements can be confusing when you aren’t familiar with them.

Directors are a crucial part all limited company businesses and correctly drafted service agreements should reflect the terms that both parties are happy with and ensure clarity and protection to both sides which can help to avoid problems arising at a later date.

Our expert Employment Law Solicitors are ready to help create comprehensive Directors Service Agreement that correctly records the terms of employment.

What Director’s Service Agreements Related Services do we provide?

Our team of expert Employment Law Solicitors can:

  • Review existing Director’s Service Agreements
  • Suggest suitable amendments if any are needed
  • Draft new versions from scratch

Directors Service Agreements FAQs

What is a Director’s Service Agreement?

In simple terms, a Director’s Service Agreement is a contract that sets out a director’s responsibilities, rights and benefits.

What should be in a Director’s Service Agreement?

A Director’s Service Agreement should include all of the things that would be included in a Contract of Employment as well as other requirements such as:
• Restrictions
• Bonuses
• Compliance with Articles of Association
• Resignation provisions covering things like shares and share options, gardening leave and resignations from office
• Restrictions on things such as involvement in other businesses
• Obligations to admit any actual or potential conflict of interests to the board
They should be tailored to the specific needs of a business when hiring or appointing a director, with a level of detail that is not usually found in more basic forms of employment contract.

Are Director’s Service Agreements essential?

It’s not legally essential to have a Director’s Service Agreement, but it is strongly recommended for clarity between both business and director. The main benefit of using one is being able to clearly state what the director’s specific rights and responsibilities are.

Is a Director’s Service Agreement a Contract of Employment?

Director’s Service Agreements are essentially a Contract of Employment but for Directors. They usually include more detail than would be included in a regular Contract of Employment such as the things previously listed in the “What should be included in a Director’s Service Agreement?” section.

Employment Law Specialists at Atkins Dellow

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