Directors' service contracts
Directors are required by company law to have a service contract.
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.
Info Zone
- Business
- Selling your business
- Starting a business
- Limited companies
- Forming a limited company
- Pros and cons of limited companies
- Buying a company 'off the shelf'
- Tax and the company car
- Company bonus or dividend?
- Tax saving strategies
- The tax system for companies
- Companies Act 2006
- Accounting records
- An historical record of the key changes
- Appointment of directors
- Changing the company name
- Choosing a name for your company
- Do you need an audit?
- Filing of accounts and late filing penalties
- Registered office
- Related director agreements
- Shares and share capital
- A company's members
- A more in depth look at the act
- An auditor's rights to information
- Appointment of auditors
- Directors transactions requiring members approval
- Directors' liabilities
- Directors' report
- Directors' service contracts
- Financial year
- General duties of directors
- Group accounts
- Loans to directors
- Records of directors meetings
- Signing of accounts: directors and auditors
- Forming a limited company
- Companies House - forms you need to know about
- Interest and tax payments
- The law and directors' responsibilities
- Statutory records
- The company secretary
- Getting the company struck off
- Running your business
- Partnerships
- Your employees
- Personal
- Tax
- Calculators
- Publications and Factsheets
- Business News