Defining the relationship between directors and the business.
Directors witness everything within a business. They support strategy, have access to valuable business information and are essentially responsible for guiding a company to its success.
With so much responsibility at stake, how can you ensure that they always have the best interests of the business in mind? And what happens if they don’t? A Director’s Service Agreement is a more detailed agreement than an employment contract: it covers the specialist role of a director and sets out their obligations to the business.
Good corporate governance
By having an agreement in place, a business can spell out its expectations around decision-making, remuneration and responsibilities to shareholders.
Protect sensitive information
Outline a director’s relationship with the sensitive data a business holds, to ensure they don’t use or disclose data in a way that could negatively impact the company.
There are specific responsibilities in The Companies Act and common law that are given to directors. Making sure a director understands their role in line with company policies is essential.
What happens if they leave?
Restrictive covenants ensure that if a director leaves, their ability to poach customers or work for a competitor is limited.
In fast-paced companies having highly communicative, down-to-earth, and proficient legal counsel is a must and during my time as an entrepreneur I’ve worked with a lot of lawyers from many firms. My experience with Stephenson Law is without doubt the best. As a CEO in the high growth tech startup sector, my experience of legal work had been one of stress, complication, and unnecessary expense until I met the flock.
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Building your board of directors is an important hurdle to scale. We simplify the process and ensure your relationship with directors starts on the right foot.