A director designation agreement is a written document which is framed by and between two parties, one of which is the company and the other is the investor in the company. These agreements are made when an investor suggests or nominates a person to be the director of the company or to be a part of the board of directors of the company. A director designation agreement is a legally binding agreement which is enforceable by law and is drafted in a formal manner by taking help from the legal advisors.
A director designation agreement must consist of the details of both the involved parties such as their names, titles and contact information. The starting and termination date of the agreement must also be specified in the document. The main part of the director designation agreement is the part where the terms and conditions are mentioned. These terms entitle each of the parties to a certain number of the duties and responsibilities.
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