Directors’ Service Agreements

Directors carry unique responsibilities, so their contracts need to do more than cover the basics. We draft, review, and negotiate Directors’ Service Agreements that reflect board-level duties, protect business interests, and meet the standards of the Companies Act 2006. Whether you're appointing a new director or reviewing existing terms, we’ll help you get everything in place with clarity and confidence.

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Directors’ Service Agreements

Tailored Directors’ Service Agreements

We draft agreements that clearly define each director’s role, responsibilities, and governance needs, ensuring clarity on duties, authority, reporting lines, and performance expectations.

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Compliance and contract differences

Guidance on how directors’ service agreements differ from standard contracts and ensure they comply with both employment law, company law, and regulatory requirements.

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Duties, powers, and fiduciary responsibilities

We embed robust provisions clarifying directors’ powers, statutory and fiduciary duties, board procedures, conflicts management, and decision-making authority.

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Remuneration and incentives

We document salary, bonuses, share options, LTIPs and benefits so the full package is transparent and enforceable.

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Protecting business interests

Draft and enforce confidentiality, IP assignment, non-compete, non-solicit and non-deal provisions to protect goodwill, data, clients, and talent during and after employment.

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Notice, garden leave, and termination

Advice on notice periods, garden leave clauses, disciplinary options, capability processes, settlement terms and enforceable post-termination restrictions.

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Questions we’re often asked

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What is a Directors’ Service Agreement?

It’s a tailored employment contract that sets out a director’s duties, responsibilities, pay, and terms for leaving the business.

Do directors need a written service agreement?

Not by law, but it’s best practice and under the Companies Act 2006, you must keep written records of their terms.

Can we use garden leave for directors?

Yes, if the contract includes a garden leave clause. It’s often used to protect the business during notice periods.

Are restrictive covenants enforceable against directors?

They can be, as long as they’re carefully drafted and protect a legitimate business interest.

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Experts in every area

Managing Partner

Ellie Broadhurst

Associate Solicitor

Jemma Fieldsend

Georgia Jeonney

Partner and Head of Employment

Graduate Solicitor Apprentice

Partner and Head of Employment

Anna Schiavetta

Senior Associate Solicitor

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