What is a director’s service agreement?
When to use: The addition of an executive director to your board comes with a series of requirements, including the necessity to define the relationship. For this, you would need a director’s service agreement, which would essentially set out key points of interest relating to this executive director.
What it contains: This director's service agreement template is an employment contract (or service agreement) for an executive director that contains the key information, responsibilities, and rights between an appointed executive director and a company. It contains the key terms of what the director can expect from their role, and expressly appoints them to the board of directors.
IP rights: This director's service agreement template assumes that the director may or will be creating intellectual property rights during their employment. If this optional clause is included, the document will need to be executed as a deed (in other words, stated to be a deed, and signed in the presence of a witness) as this clause allows the company to act as power of attorney for the director. The director's service agreement template will automatically adapt depending on whether or not you choose to include the IP clause.
This director's service agreement template assumes that the company is registered in the UK and that English law governs the terms.
Find out more about this this director's service agreement template, including the benefits it could bring to your business, by reading this comprehensive guide
When do I need to use this director's service agreement template?
Executive vs non-executive directors: You would use this director's service agreement template when employing an executive director. For non-executive directors, this letter of appointment for a non-executive director should be used instead.
Find out more about the differences between executive and non-executive directors here.
What does this director's service agreement template include?
Key provisions: This director's service agreement template includes, amongst others, the following terms:
- “Written particulars of employment” - this is the information legally required to be provided to employees under UK employment law and includes details of the role, salary, benefits and probationary period;
- Responsibilities and duties of the director;
- Sickness and other absence process;
- Process for termination of the contract with notice and without notice, as well as a clause allowing for payment in lieu of notice;
- Obligations on termination, such as returning property and restrictions on competing with the business / poaching staff and customers;
- Garden leave;
- Protections for confidential information and intellectual property rights
- Details of disciplinary and grievance policies.
High-quality end result with Docue
Lawyer-grade document: Docue’s director’s service agreement template is lawyer-made, lawyer-maintained, and has lawyer-crafted guidelines to steer you through every stage of drafting your agreement.
Simple and easy: Docue allows your business to create, customise, sign, store, and manage your agreements all in one place. Simply click through the intelligent tick box options and text box answers and you’ll have a comprehensive, tailored, and ready-to-use director's service agreement in no time.
Full contract process: Once you have created a contract that is tailored to your business needs, you can send the contract to each of the parties for electronic signature. After the contract is signed, you can store the agreement in Docue’s smart storage vault to ensure you always have quick and easy access to your contracts in one place. You can ensure you never miss a contract renewal again by enabling Docue’s handy reminders to notify yourself of the next upcoming deadline.
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