Strengthen Your Board with a Non-Executive Director's Agreement
Appoint an advisor or contracting consultant to your company's board in a non-executive capacity using a Director's Agreement for Non-Executive Directors. This agreement ensures a clear understanding of the terms of the relationship, promoting a successful partnership.
Essential Features of a Non-Executive Director's Agreement
This comprehensive agreement covers various crucial aspects, including:
- Roles and Responsibilities: Define the incoming director's duties clearly to prevent misunderstandings and foster a smooth collaboration.
- Limitation of Liability: Establish the scope of the non-executive director's liability within the company.
- Confidentiality: Ensure the incoming director agrees to maintain the company's confidential information.
- Remuneration: Detail the payment terms for the non-executive director, including salary, bonuses, and other benefits.
- Indemnity and Insurance: Outline the company's provisions for indemnification and insurance coverage for the non-executive director.
Formalize the Appointment with a Letter
Present the Non-Executive Director's Agreement in the form of a letter (which this is) from the existing company directors, proposing the terms under which the new director will join the board. Print the letter on company letterhead and have a current director sign it. If sent by mail, provide two copies for the incoming director - one for signing and returning, and another for their records.
When to Talk to a Lawyer or Get a Quote
Our Non-Executive Director's Agreement template offers a solid foundation for appointing a director. However, additional guidance may be necessary in some situations. Talk to a Lawyer or Get a Quote if you:
- Seek advice on the specifics of your Non-Executive Director's Agreement.
- Require assistance tailoring the agreement to your unique business needs.
- Face complex or unique circumstances that need specialised legal expertise.
We designed this agreement to establish a strong foundation for your board appointments. Still, we recommend getting legal advice to ensure the document addresses your needs and complies with applicable laws adequately.
Consult a lawyer (such as Attune Legal) if you need help tailoring this agreement to your business needs. This step will ensure that your agreement accurately reflects your negotiations with your incoming director while protecting your interests and complying with the law.