Director’s Service Agreement

A company director plays a major role in steering an organisation in the right direction to achieve its goals. It is therefore essential to have a robust Director’s Service Agreement in place to ensure a newly appointed director has the company’s best interests and success in mind and its members are protected if it does not.

At Askews Legal LLP our Company Law Solicitors can draft, review, and update your organisation’s Director’s Service Agreement. To protect your company’s best interests, your Director’s Service Agreement must be carefully tailored to meet the requirements of your business, as this will ensure that they are easily understood, relevant, and legally watertight. Our Company Law Solicitors have a robust reputation for drafting highly effective Director’s Service Agreements for companies in Coventry and Warwickshire and beyond.

We are a diverse, multi-lingual law firm that uses best-in-class technology to provide clients with streamlined, modern, and highly effective employment law advice and representation. Our years of experience in company law means we have a robust reputation for excellence with the UK’s best Barristers  and Queen’s Counsel , and business psychologists who will when needed, bring additional support to our Corporate Law Department.

Below are answers to some common FAQs concerning Director’s Service Agreements.

What is the difference between a Director’s Service Agreement and an Employment Contract?

A Director’s Service Agreement will provide the basic information you would expect in an Employment Contract. In addition, it can provide more extensive detail on the director’s role and responsibilities. A Director’s Service Agreement will also set out compliance requirements in relation to directors’ duties under the Companies Act 1996 and what is expected of the director in regard to decision making.

What should be included in a Director’s Service Agreement?

As well as the essential details of the director’s employment, a Director’s Service Agreement can also contain details concerning:

  • Renumeration – this should be transparent and in line with company policy on renumeration (which may include bonuses and share options).
  • IP protection and policies around confidential information – during their tenure directors will have access to important company information and intellectual property. To ensure your client lists, innovations, and supplier relationships do not follow the director out the door at the end of their contract, it is imperative to add in clauses that require the director not to disclose such information in a way that negatively affects your organisation.
  • Restrictive covenants – to ensure a director does not take up a position with a competitor or set up a rival business, it is essential to include a restrictive covenant clause in your Director’s Service Agreement. These must be carefully drafted to ensure they are upheld by the Courts should the covenant be breached.

Depending on your business and market sector our Company Solicitors may also recommend you include clauses relating to disputes resolution, grounds for dismissal, and an exit strategy.

Why choose us?

Our Company Law Solicitors have been advising business owners throughout the West Midlands for many years. We are proud of our personal service to all our clients and where possible we are always available by phone and will respond to your email within 24 hours. As a full-service law firm, we can also provide advice on other matters such as commercial property and disputes resolution.

Our Solicitors are businesspeople themselves; therefore, we understand that every decision you make must encompass commercial reality. We receive most of our instructions via word of mouth recommendations because company directors and business owners throughout the West Midlands know that we have the knowledge and dedication required to ensure every legal aspect of their Director’s Service Agreement is meticulously taken care of.

The advice we give is sharp, practical, and bespoke to your commercial objectives. Our agility and investment in technology mean many of our processes are automated, thereby reducing fees and ensuring your investment as our client is primarily directed towards acquiring our expertise, getting solutions to your problems, and putting you in a position to action opportunities.

We are focused on results and achieving them in the swiftest, most cost-effective way possible. Our Company Law Solicitors will take care of your legal concerns so you can concentrate on your organisation’s future growth and prosperity.

To talk to us about creating a Director’s Service Agreement, please call us on 02476 231000 or email

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