Mou Between Company Directors Template for England and Wales

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Key Requirements PROMPT example:

Mou Between Company Directors

"I need an MOU Between Company Directors for our UK tech startup, clarifying the roles between three executive directors and establishing protocols for strategic decision-making as we prepare for Series B funding in March 2025."

Document background
The MOU Between Company Directors serves as a crucial governance tool in corporate management under English and Welsh law. It's particularly valuable when companies need to clearly define director relationships, establish protocols for decision-making, and outline specific responsibilities. This document is commonly used during corporate restructuring, when new directors join the board, or when clarifying existing arrangements between directors. It ensures compliance with the Companies Act 2006 while providing a clear framework for director interactions and responsibilities.
Suggested Sections

1. Parties: Identification of the directors entering into the MOU

2. Background: Context and purpose of the MOU, including reference to relevant Companies Act 2006 provisions

3. Definitions: Key terms used throughout the document including statutory references

4. Purpose and Scope: Objectives and boundaries of the agreement between directors

5. Directors' Obligations: Core responsibilities and commitments aligned with Companies Act duties

6. Duration: Term of the MOU and renewal provisions

Optional Sections

1. Confidentiality: Provisions for handling sensitive information in accordance with UK GDPR and Data Protection Act 2018

2. Non-Competition: Restrictions on competitive activities in line with Competition Law requirements

3. Resource Allocation: Distribution and management of company resources between directors

4. Dispute Resolution: Process for resolving disagreements between directors

Suggested Schedules

1. Schedule of Responsibilities: Detailed breakdown of each director's duties and statutory obligations

2. Company Policies Schedule: Reference to relevant internal policies and governance requirements

3. Conflict Management Procedures: Detailed processes for handling conflicts of interest as per Companies Act 2006

4. Performance Metrics: Specific KPIs or performance measures for director responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company directors' statutory duties (Sections 171-177), including conflicts of interest provisions, directors' powers and responsibilities, and company decision-making processes

Corporate Governance Code: Guidelines for best practices in director conduct, board responsibilities, and decision-making protocols (applicable depending on company size/type)

Enterprise Act 2002 and Competition Act 1998: Competition law considerations, particularly relevant if the MOU involves market-sensitive information or could affect market competition

Employment Rights Act 1996: Employment law considerations, particularly relevant if the MOU affects employment terms of director-employees

UK GDPR and Data Protection Act 2018: Data protection regulations governing the handling of personal and sensitive information that might be shared or referenced in the MOU

Financial Services and Markets Act 2000: Regulatory framework for companies operating in financial services sector, including specific obligations for directors

Common Law Principles: Established legal principles covering fiduciary duties, duty of confidentiality, and general contract law principles applicable to director relationships

Trade Secrets (Enforcement, etc) Regulations 2018: Legislation protecting business secrets and confidential information, crucial for MOUs involving sensitive business information

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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