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Directors' Service Contracts
Definition
A directors' service contract, in relation to a company, means a contract under which:
- a director of the company undertakes to perform services (as director or otherwise) for the company, or for a subsidiary of the company, or
- services (as director or otherwise) that a director of the company undertakes personally to perform are made available by a third party to the company, or to a subsidiary of the company.
The company is required to keep directors' service contracts or any memorandum of terms at the company's registered office, or at any place specified under section 1136, as section 229 confers rights on members to inspect a request copies.
Where a director is also the sole member, the company must, unless the contract is in writing, ensure that the terms of the contract are either set out in a written memorandum or recorded in the minutes of the first meting of the directors following the making of the contract.
Introduction
Timetable
- Provisions commenced in January 2007
- Provisions commenced in April 2007
- Provisions commenced from 1 October 2007
- Provisions commenced from 6 April 2008
- Provisions commencing from 1 October 2008
- Provisions commencing from 1 October 2009
The Act In Depth
General
- Forming a company
- Choosing a name for your company
- Changing the company name
- Registered office
- A company's members
- Shares and share capital
Directors
- Appointment of directors
- General duties of directors
- Transactions with directors requiring approval of members
- Loans to directors
- Related agreements
- Directors' service contracts
- Directors' liabilities
- Records of directors meetings
- Company secretary