Because your administrators have privileged access to your confidential information, intellectual property, customer lists, and technical information, you also need to ensure that this information is protected. Perhaps you would also like to make sure that if a manager leaves your company, their ability to work for a competitor is limited at least for a certain period of time. Our corporate and corporate governance lawyers can help you draft and review your director`s service contracts. Tell us about your situation by calling 0800 689 1700 or by filling out this contact form. We strive to respond to all messages received within 24 hours. A service contract for directors should contain the following information: in private companies there is a wide choice of ways to issue shares to directors. For listed companies, the choice is more limited. In any case, tax plays a role, because the benefit that directors receive when they are shareholders is taxable. The development of the tax on unlisted shares can be particularly difficult and the system managed by HMRC is far from ideal. Another tax consideration, appreciated by the directors, concerns the advantages of the relief of the disposal of operating assets (business facility).
The obligation of confidentiality is not mandatory. Special protection is usually required in the context of the directors` service contract. When the role of director ends, the company will typically require the return of all ownership of the business, including the provision of passwords, devices, and proof that home devices have been exempted from sensitive information about the business. There`s another good reason why you need service agreements for directors, and that`s because your directors can have multiple roles within the company, as directors, shareholders, and employees. If you don`t agree in advance on your expectations about how the director is treated when he leaves, it can be difficult and disturbing to separate from the relationship when she gets upset. In practice, the person who controls the finances controls the company….