A FTSE SMALL CAP Group Counsel & Company Secretary writes...
“I would like to conduct a “straw poll” concerning the form of contractual document used for the appointment of non-executive directors of listed companies.
We have always used an “appointment letter” type of document – i.e. a 3-5 page letter to the newly-appointed NED setting out their responsibilities etc. We do not use a lengthy contractual document (such as a “service contract” style document) and the appointment letter that we use is executed (i.e. the letter is signed as accepted by the NED)under hand and not as a deed.
But we may be not up to date with this approach.
It would be helpful to know if listed companies nowadays use either the “appointment letter” or the “service contract” type formats for their NED appointment contractual documents, and does this agreement (in whatever format it takes) take effect as a deed or not?”
And as a supplemental question: If there is a “standard form” NED appointment contract (of whatever format) out there, please could someone point me towards it.”