Directors are also classed as employees and therefore employers are obliged by law to provide directors with a statement of certain terms of employment. A director’s employment contract is often called a director’s service agreement. There are various regulatory requirements for such agreements. Some of these depend on whether the company is private or listed. A written copy of the director’s service agreement must always be kept at the company’s registered office.
Directors’ service contracts are often drafted by the employer for the employer’s protection and therefore it is sensible for the director to obtain independent legal advice on the terms of the agreement.
