Under UK law, a director is not automatically an employee. Having a directors service agreement allows for important questions surrounding remuneration, responsibilities and what happens when there are changes to be answered.
By defining duties, remuneration and termination arrangements, there is no room left for ambiguity.
Having clear terms from the start reduce the chance of disputes down the line.
Having a stable structure and good corporate governance reinforces the structure investors look for.
When a director is also a shareholder there is more complexity.
It’s important to consider:
At Branch Austin McCormick, we guide you through every step of the settlement agreement process, so you know where you stand before you sign anything.
Managing Partner and Head of Dispute Resolution
Hal is the managing partner and head of dispute resolution. He has a wide range of expertise gained from over 30 years of experience in numerous areas of practice, including commercial and general litigation, inheritance disputes, employment, family law and immigration.
Partner and Head of Corporate
Harender is an experienced partner and head of the corporate department, having acted on corporate and commercial matters for over 20 years. Harender previously headed up the corporate team of the London office of a national firm, before joining us in 2012. Harender prides herself on long term client relationships and offering clear, user-friendly advice through her personable approach.
Partner and Head of Employment
Elliot is a seasoned litigator in the employment field, able to represent high profile clients in the Employment Tribunal, the Employment Appeal Tribunal (“EAT”), High Court and Court of Appeal. Elliot’s legal practice consists of all manner of Equality Act claims (discrimination, victimisation, harassment, equal pay etc) and whistleblowing claims including automatic unfair dismissal and detriment claims. He can also advise and represent in Unfair Dismissal, Wrongful Dismissal, Constructive Dismissal and Breach of Contract Claims.
Associate - Employment and Disputes
Emily Iveson joined the firm in October 2023, starting her training contract in May 2024, working in the litigation, family and employment departments. Emily has now completed her training and qualified as a solicitor, working across the employment and disputes teams.
Consultant – Dispute Resolution, Employment & Family Law
Nadia’s practice represents a broad cross-section of the kind of legal services that most businesses and individuals typically need, regardless of industry sector or client profile, with a particular focus on dispute resolution.
While not every director needs a service agreement, most companies will benefit from having one. It protects both the company and the director and is typically expected by lenders and investors as part of good governance.
Without a formal agreement, the terms between a company and the director can be more readily disputed, leading to costly disagreements. Company law provides a basic framework, but it does not cover most of the detail that actually matters.
Template agreements offer a useful starting pint but not much beyond that. An executive service agreement should reflect the company, the director’s role and any shareholder arrangements. Restrictive covenants must be carefully drafted to be enforceable.
We can support you, ensuring your agreements and practical and robust should they be taken to court.
