Templates

Letter of Appointment for Non-executive Director

A company may choose to appoint a director to the board who is not an employee. These are known as 'non-executive directors' or 'NEDs'. This document governs the relationship between a company and a non-executive director. Read more
Legislation GB-EAW
Topics Updated by a lawyer: 9 Dec 2022

Appointing a non-executive director

Non-executive director: As your business grows, you may see the need for a NED, or “non-executive director”. This would be when a company appoints a director to the board who is not an employee. A non-executive director is still a 'statutory' director, which means that they're subject to the same duties and obligations as any other director, including those that are employed by a company (known as 'executive directors'). To define this relationship, you would need to use a letter of appointment for a non-executive director.

Content of the appointment letter: This document template governs the relationship between a company and a non-executive director. It sets out when the relationship begins and how it can end, how the non-executive director will be remunerated (with options for payment of a fee or the issue of shares by way of 'sweat equity' that are subject to provisions enabling a company to recover shares if they cease to be appointed), the duties the non-executive director must perform and any restrictions or conditions imposed on them (for example, to prevent any conflict of interest).

Remember to inform Companies House: You'll also need to inform Companies House that you have appointed a new director within 14 days of their start date by filing a Form AP01.

When not to use this template: You shouldn't use this document for a director you'd like to engage as an employee - you should use a director's service agreement instead.

Why Docue?

Created by lawyers: Docue’s appointment letter template is lawyer-made, lawyer-maintained, and has lawyer-crafted guidelines to steer you through every stage of drafting your document. If you do get stuck, Docue’s lawyers will be able to provide real-time support via instant chat.

Easy to use: To create your letter of appointment with confidence and speed, simply click through the intelligent tick box options and text box answers and you’ll have a comprehensive, tailored, and ready-to-use letter in no time. Once you are all done, you can leverage Docue’s unlimited and automatic storage to keep your appointment letter safe and sound.

Legislation GB-EAW
Topics Updated by a lawyer: 9 Dec 2022

Docue gives you access to 100+ high-quality legal templates drafted and maintained by UK lawyers. Trusted by 30,000+ companies.

"Docue’s suite of templates saves SMEs on time, money, and stress, by equipping them with affordable legal documentation they can rely on."

Ed Boal

Director and Head of Corporate, Stephenson Law

"Having legal documents available at the touch of a button is incredibly convenient."

Jackson Harrison

Owner, J Harrison Installations