Document background
Director Settlement Agreements are used when a company and a director agree to terminate their relationship on mutually agreed terms. This document, governed by England and Wales law, provides certainty and protection for both parties by clearly defining the termination arrangements, including financial settlements, ongoing obligations, and the waiver of potential claims. The agreement is particularly important for ensuring compliance with corporate governance requirements and managing potential risks associated with director departures. A Director Settlement Agreement typically requires independent legal advice and must comply with various statutory requirements, including those under the Companies Act 2006 and employment legislation.
