| Commentary

13 Duration of directors’ service contracts

| Commentary

13 Duration of directors’ service contracts

Where a director enters into a service contract with the company of which he is a director, the Companies Act 2006 restricts the length of the term which can be included in that contract1. For this purpose, a director’s ‘service contract’ in relation to a company, means a contract under which

  1. 13.1

        a director of the company undertakes personally to perform services (as director or otherwise) for the company (or for a subsidiary of the company); or

  2. 13.2

        a third party makes available to the company (or to a subsidiary of the company) services

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