The differences between shareholders, executive directors and non-executive directors can be confusing. Our focus here is largely on executive directors, hereafter referred to as directors.
Shareholders own companies via share capital. Directors are employees of the company (normally) in very senior roles. In SMEs, the shareholders and directors are often the same people. Sometimes a director may be allocated shares within the business, but this may be a minority stake.
Director’s service agreements are similar to employment contracts. Many of the provisions within the two legal documents may be similar. Usually, both documents will oblige the individual to comply with the policies and procedures outlined in the company staff handbook.
However, director’s service agreements typically contain a number of provisions that are specific to senior individuals. For example, the company may wish to restrict a resigning director from setting up a competing business or approaching the company’s existing clients for a period of time following the director’s resignation.
In addition, where a director has also been allocated shares, the company may wish to ensure that certain conditions attach to those shares, for example, when and to whom the shares can be sold and/or what value the shares are worth depending on how the director leaves the company.
You might be thinking you don’t need an agreement because;
Our Approach to Directors Service Agreements
We found the Redundancy Pack really very helpful; it certainly fleshed out some of the bones we were aware of…
Great quality work, turned around with speed and professionalism. Thoroughly recommended.
Forward thinking legal services for business owners. Ryan and Jonathan are fantastic, I would highly recommend!
Hybrid Legal helped me immensely when I was lost in the jargon of legal property rights for artists. I found…
They’ve been brilliant from the outset.
I will definitely be using this service in future.
Incredibly efficient, friendly and professional service. All my questions answered thoroughly, promptly and clearly. Having a fixed fee ensured great…
Professional friendly experts who offer timely understandable advice and are excellent value for money.
Fantastic, progressive law firm – they have all the answers!
Hybrid give honest and straightforward advice and support, even if their recommendation means that no service would be required. Hybrid…
A great team of people, who gave me quick and really useful advise. Highly recommend.
The service we received was excellent and quick.
Well thought out guidance and friendly competent service, firstly from Freya and latterly Ryan. Will be using Hybrid Legal again.
Jonathan was excellent throughout our GDPR health check. He was always quick to return communications and the service was very…
A pleasure to work with.
I cannot recommend this firm highly enough.
Hybrid Legal are a great company to work with.
Very professional approach, a really great team.
Hybrid Legal are first class in business Law.
The service we received was efficient and much care was taken to understand our specific requirement to ensure that the…
Hybrid Legal are a fantastic company to work with and offer first class legal advice. The team are a friendly…
Hybrid were very helpful and understanding throughout, with great communication. Thoroughly recommend.
Everyone we deal with provides a very human experience.
Hybrid Legal are a really reliable, clued up bunch, that it pays to have on your side. They’ve helped us…
Highly recommended and a law firm I shall be doing business with.
Thank you for taking the time to explain every step of the process to me and ensuring we found the…
We would like to thank Hybrid Legal for their amazing work. We will 100% be using them again and are…
Alan and his team have given me support and advice well beyond what I’d anticipated at a very reasonable price.
Ryan and the team have been fantastic for my firm.
It has been great to know the Hybrid legal team, they feel like an extension of our own team.
Hybrid Legal were recommended….for a transfer of ownership and did a first class job.
The Hybrid team gave me excellent advice on resolving an employment contract, I will definitely be using them in the…
I would thoroughly recommend their services.
Really good people. Service I asked for was done quickly and at a very good price which they recognised was…
I highly recommend.
We would not hesitate in using again or recommending.
A really good team – responsive, professional and friendly. Far better value than a conventional law firm.
Straightforward and to the point.
We are very happy with the services received and would recommend to other companies.
Superb service, very highly recommended!
Dynamic & forward-thinking.
Hybrid Legal are awesome. Being a bit of a difference in our industry, our clients aren’t looking for your typical,…
I particularly like the way that they demystify complex legal terms and provide easy to follow advice for our contract…
I simply cannot recommend Hybrid enough.
Hybrid Legal provided excellent value for money when we were researching the market for new contracts to be devised. Professional…
I will have no hesitation in using or recommending to other businesses.
A very professional team and highly knowledgeable.
They are always prompt, professional and very helpful. They moved quickly and produced exactly what I wanted first time. I…
Using Hybrid Legal won’t cost you the earth. I am extremely satisfied with the work they have done so far…
Hybrid Legal are superb! Excellent legal advice from start to finish. The team are really friendly, respond quickly and deliver…