Document background
The Company Director Agreement is a fundamental governance document used when appointing new directors to a company's board in Canada. This agreement is essential for both public and private companies operating under Canadian jurisdiction, providing a clear framework for the director-company relationship. The document must comply with the Canada Business Corporations Act and relevant provincial legislation, addressing key aspects such as fiduciary duties, corporate governance requirements, and regulatory compliance. It serves as a crucial risk management tool by clearly defining expectations, responsibilities, and liabilities, while protecting both the company's and the director's interests. The agreement is particularly important in today's complex business environment where director accountability and corporate governance standards are increasingly scrutinized.
