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Non-executive Director Appointments

Once you have decided that you need the input of a non-executive director on your board, you will need to think carefully about the terms of their appointment and plan ahead to ensure that their appointment is a smooth one. By obtaining a correctly drafted appointment letter, you can protect yourself and your business from any problems that may occur in the future.

Huntley Legal can help to prepare you for the appointment of your non-executive director by ensuring that you have a properly thought through agreement ready for you to provide to the new non-executive director and to allow you to implement the appointment in a well managed process that reflects the different role that the non-executive director will have in the business. This can also provide the non-executive director with a reassuring welcome to your board and help to get the relationship off on the right footing.

Items For Consideration

A non-executive director, also known as a NED or NxD, is there to challenge how the business is being run by providing objective assessment and evaluation. This can include opinions on the overall strategy and performance of the business as a whole and also provide input on any significant appointments within the business.

You should consider how many appointments you wish to make as the non-executive directors will need to have the necessary influence on the board or else their appointment will not serve any purpose.

As there is no legal distinction between an executive and a non-executive director, your non-executive director will also be subject to all statutory duties laid out in the Companies Act 2006.

The letter of appointment of any non-executive director should contain;

  • Their responsibilities within their role, including statutory duties
  • Length of the appointment
  • Review date
  • Termination details
  • Pay details and expenses policy
  • Whether any shares are to be issued as part of the package
  • Confidentiality clauses
  • Company property details
  • Any company policies and procedures that may apply
  • Conflict of interest policies
  • Liability insurance held by the business

If you do not make sure that your letter of appointment deals with all of the necessary information to protect the business, you may find that if the relationship between the non-executive director and the business breaks down, that you leave yourself open to potentially difficult legal problems. By preparing your appointment document with a solicitor, you can be certain that you are secure.

Our Experience Can Work For You

Huntley Legal has many years’ experience working with businesses just like yours and as a result, we can tailor our approach to your requirements.

We have a number of different options from completely bespoke advice and preparation of an agreement, right through to the amendment of a standard document to suit your business needs.

This will allow you to manage your legal fees bill and keep costs under control. Our fee structure allows for fixed and capped fees and even monthly billing so whatever suits you, we can provide that for you.

Get in touch today to find out more about how we can help your business with its legal issues, no matter how big or small.

FREE initial enquiry

To discuss your legal needs, please call Marie Huntley on 020 3609 8764.

Simply outline the situation you're facing, and we'll tell you how we can help and what it will cost.

There's NO CHARGE for the initial conversation. That's right. It's completely free. Zilch. Nada.

By the way, our fees are often fixed or capped to help you budget, and we send invoices monthly so you can spread the cost.

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Marie developed contracts for us which are professional and specific to our business and allow us to easily manage our relationships with very different clients and suppliers.

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Quinn Wilson Associates Limited

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