It will help protect the Board of Directors from criticism and the director from inappropriate requests. Even if a director is not an employee of the company, but is, for example, a non-executive director, they need a service contract from a director to cover his non-executive duties. Therefore, the most important differences between the service contracts of our directors are not about the position of the director or what he does, but about his contractual relationship with the company. I found the model for a manager service agreement very useful, thorough and extremely competitive. These service contracts are net and net. For the executive who participates in the day-to-day management of the business, the terms of employment have been combined with provisions that provide additional protection to the company, necessary for someone at the higher level of the management structure. Our offer also includes more traditional service agreements for independent, non-executive and unpaid “non-exec” directors, as a charity may need. This agreement provides a comprehensive legal and practical framework for each Executive Director. It covers all the terms of an employment contract of a member of the board of directors and clarifies the relationship between the company and the director in order to avoid any conflict of interest. On the other hand, a non-executive director of a company is often independent, although you will still have to enter into a service contract with them to cover your tasks and obligations, while you are the director of your company. An executive has certain rights and obligations that flow as an employee and as a director of a company. We also have other service contracts for non-managerial and unpaid directors.
As part of good corporate governance, the service contract of your directors should clarify exactly what is expected of the director and, in particular, your expectations regarding decision-making and the need to act at all times in the best interests of the company.