Directors' Service Agreements

Our team of lawyers are experienced in drafting Directors' Service Agreements across all industries and business sizes.

Serve your business interests & cover all legal/operational requirements

Clarify the Director’s fiduciary duties

Ensure compliance with The Companies Act 2006

Develop clear exit strategies and restrictive covenants

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Do you need a Directors' Service Agreement?

Directors’ services agreements are analogous to employment contracts: they set out directors’ roles, responsibilities and obligations, both statutory and company-specific.

Directors’ service agreements are essential because they regulate the Company’s relationship with the directors that have day-to-day responsibility and control.

Even if a firm has no employees, it should still have directors’ services agreements in place for the protection of all parties.

What might a Director's Service Agreement cover?

Directors’ service agreements typically cover three main areas:

Contractual arrangements for directors: job title, their terms of employment, description of their roles and powers, salary, hours of work, pension etc.
- For instance, directors may have the ability to enter into contracts with other firms, employees, and contractors. Agreements can include limits on directors’ power, too.
Duties the director must perform in their company role, i.e. the statutory “fiduciary duties” owed to the company.
- Under the Companies Act 2006, directors have certain duties towards the companies they form. These are known as “fiduciary duties”. Directors’ service contracts should refer to these duties, a breach of which may amount to grounds for dismissal. The legislation says that directors must:
  - Declare all interests in proposed transactions and arrangements
  - Avoid conflicts of interests
  - Promote the success of the company
  - Exercise reasonable care, skills and diligence in their role
  - Exercise independent judgement
  - Act within their powers
Any entitlement to bonus, shares or other benefits

Benefits of a well-crafted Directors’ Service Agreement:

Compliance. The Companies Act 2006 requires companies to place responsibilities on directors that relate to the work they do. Firms need to craft company and industry-specific documents that reflect this.
Corporate governance. Directors’ service agreements serve as a backstop for effective corporate governance. By setting out what you expect of directors, you ensure that the firm develops in a way that benefits all stakeholders.
Protection of sensitive commercial information. Directors’ service agreements also protect firms from loss of intellectual property or brand secrets. Confidentiality clauses prevent directors from divulging information to third parties.
Clear exit strategy. Company relationships do not always proceed amicably. On occasion, directors can leave on sour terms. It is important to have appropriate notice provisions that reflect the seniority and likely timescales for recruiting replacements.
Restrictive covenants. Restrictive covenants are aimed at preventing directors from causing harm after they leave, for example if they leave your firm and take commercially sensitive information to a direct rival. If violated, these clauses let you take legal action against the departing director.

We can help you with:

Experienced lawyers who can assist in all parts of Directors’ Service Agreement preparation Crafting bespoke documents that serve your business interests Agreements that cover all legal and operational requirements

Restrictive covenants Confidentiality agreements and NDAs Employment contracts

Why Neathouse Partners?

Renowned expertise

Our team comprises of industry leaders and specialists dedicated to staying ahead of the curve in the latest Employment Law, Health & Safety and HR developments.

Services tailored to you

A fully bespoke 1-2-1 client-adviser model, offering a dedicated, fully qualified and experienced advisor to each client, who can handle all documentation and queries on their behalf.

Fixed fees

We base our prices on fixed monthly retainers, so you and your business receive an unlimited service without unexpected bills. This helps you to budget for your HR and Employment Law spend.

What our clients say about us

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“As a company, we have used Neathouse for a number of years. The service throughout has been exceptional. All matters are dealt with in a prompt and efficient manner. James and Gwyn are always on hand to deal with any issues and have provided detailed employment contracts, staff handbooks and advised on complex matters. I would highly recommend Neathouse as a trusted HR partner.”

Amanda Chalmers Executive Assistant Stretton Capital

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“A great service - fast, professional and friendly with accurate information on all things HR.
Full outsourced HR service is provided giving us peace of mind that we remain compliant”

Steve Griffith Business Manager St Gerard's School Trust

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“Having used the services of Neathouse Partners for many years, I’m confident to say that their employment law advice is commercial and focused on the answer rather than the journey! I have recommended the team to many other businesses and have never heard a bad word said.”

Scott Young Director - Corporate Services RedEye

“The experts on hand have been exceptional, their service is excellent and such value for money. If you are considering outsourcing your HR then I recommend you do.”

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FAQ

Frequently asked questions about Neathouse Partners.

What geographical areas does Neathouse Partners cover?

We offer services to all businesses and organisations located in England, Wales and Scotland.

Does Neathouse Partners cover my industry?

We provide HR and employment law services across a range of industries, including:

Health and social care
Retail
Hospitality and leisure
Charities
Construction
Engineering and manufacturing
Commercial cleaning
Healthcare

Visit our industries page for more information on the sectors we cover. If you can't find what you're looking for, get in touch and we'll let you know if we can cover your industry.

What makes Neathouse Partners different from other service providers?

We pride ourselves on our professional yet personal service, and build close working relationships with our clients so that we remain accountable for the advice we give. We provide personalised solutions to our clients, tailoring them to their unique business challenges while making them compliant with UK employment law and HR best practices.

As a business owner, you need to focus on what’s really important to your business, with the peace of mind that we're looking after your HR requirements. We draft, edit and prepare your documents on your behalf, so that you can focus on your business knowing you’re fully compliant.

We're a small collective of specialist qualified employment lawyers and HR experts, delivering an outcome-focused end-to-end service that helps you to operate at your best and comply with both UK law and HR best practices.

You’ll be given your own personal HR Consultant or Employment Lawyer, who'll take their time to really get to know you, your business, and how you operate. This enables us to support what’s right for your business, whenever you need it. Our unique offering of lawyer-led employment law services, combined with expert HR advice, means that we can provide a seamless and consistent service to our clients. Unlike other companies offering HR solutions, our services always come at a fixed cost, enabling you to easily budget for your HR requirements, with no financial surprises later down the line. There’s no usage limits and no hidden extras. You can rest assured that all of your HR and employment law requirements are covered.

Which sizes of companies does Neathouse Partners help?

Neathouse Partners caters to a diverse clientele, accommodating the needs of everyone from small businesses with a single employee to large-scale organisations with 7,000 or more employees.

Have inquiries?

Contact our experts

Contact us, and our team will get back to you within 24 hours. We value your questions and are committed to getting them answered quickly.

We offer unlimited HR and employment law advice, covering all matters throughout the employee lifecycle.

Neathouse Partners provide redundancy advice for employers. Our solution-driven, personal service ensures that employers have access to a named and dedicated HR or employment lawyer to help them expertly navigate HR best practice and employment law, regardless of how complex the issue may seem.

Plan, manage, and monitor health and safety in the pre-construction and construction stages of your project.

Support your staff when they are struggling.

Thinking of giving up your business in favour of an EOT? Learn more >

Lawyers at our firm can draft, prepare, review, evaluate and resolve numerous commercial agreements on your behalf.

We provide specialised HR and Health & Safety services for the health and social care.

We offer unlimited HR and employment law advice, covering all matters throughout the employee lifecycle.

Neathouse Partners provide redundancy advice for employers. Our solution-driven, personal service ensures that employers have access to a named and dedicated HR or employment lawyer to help them expertly navigate HR best practice and employment law, regardless of how complex the issue may seem.

Plan, manage, and monitor health and safety in the pre-construction and construction stages of your project.

Support your staff when they are struggling.

Thinking of giving up your business in favour of an EOT? Learn more >

Lawyers at our firm can draft, prepare, review, evaluate and resolve numerous commercial agreements on your behalf.

We provide specialised HR and Health & Safety services for the health and social care.

Directors' Service Agreements

Experience the undeniable success of our services – as reflected in our exceptional ratings

Do you need a Directors' Service Agreement?

What might a Director's Service Agreement cover?