Director Appointment Letter

The Director Appointment Letter is an official document issued by a company to offer the position of a director.

A director is a party responsible for the management of the company. A party to act as director of a company must be duly appointed according to the law and the company's Articles.

Through this letter, the company aims to confirm a director's appointment as it outlines basic provisions, such as the role and responsibilities of the director, the director's term of office, and remuneration (if applicable). It also contains terms of the appointment, such as the conflict of interest clause, non-compete clause, and confidentiality obligations.

Note: This letter is different from an Employment Offer Letter. This is because this letter is to an individual or entity who is being appointed to become a director of the company. The Employee Offer Letter is used when offering employment to an individual. It is sent to individuals who will be working for the company in roles that may not involve high-level decision-making or governance responsibilities, and they may not necessarily hold an officer position.

How to use this document

This document is used by the company that is appointing a new director. To appoint a director, the first step is to call a Board or Company Meeting and pass a Resolution approving the appointment of the director.

After completing this document, it should be printed, signed, and sent to the recipient, who is the prospective director. Once the recipient receives the letter, the recipient should read the appointment letter and either accept or reject the offer. If the recipient accepts the appointment, the recipient is required to send a Consent Letter indicating that they accept the position.

After this, the company should keep a copy of this document for their record.

Applicable law

The Companies and Allied Matters Act of 2020 applies to this document. Also, the general rules of contract apply to this document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.