Directors are required by company law to have a service contract.
A directors' service contract, in relation to a company, means a contract under which:
- a director of the company undertakes to perform services (as director or otherwise) for the company, or for a subsidiary of the company, or
- services (as director or otherwise) that a director of the company undertakes personally to perform are made available by a third party to the company, or to a subsidiary of the company.
The company is required to keep directors' service contracts or any memorandum of terms at the company's registered office, or at any place specified under section 1136, as section 229 confers rights on members to inspect a request copies.
Where a director is also the sole member, the company must, unless the contract is in writing, ensure that the terms of the contract are either set out in a written memorandum or recorded in the minutes of the first meting of the directors following the making of the contract.