A director agreement is a written and formally drafted agreement which is made between a company or business entity and a person who is being appointed as the director of that company. These agreements are made for a specified period of time and are quite commonly used by almost all corporations. Any director agreement mainly lays down the duties and responsibilities of the appointed director and also specifies the salary and other bonuses to be given to the director for the specified time period of the agreement.
This agreement must have all the details of the company and the director so that there is no scope for any confusion or mistakes. These agreements also consist of the terms and conditions upon which the agreement is based. If any of the two parties is found to be violating these terms, then it can be made to face legal implications and can be charged under law.
[Also Read: Director Designation Agreement]
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