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A Director Agreement forms the legal foundation between a company and its board member in the UAE, spelling out their duties, compensation, and key responsibilities. It's a crucial document that aligns with UAE Commercial Companies Law and corporate governance requirements, especially for entities registered in free zones like DMCC or DIFC.

Beyond just setting terms, this agreement protects both parties by clearly defining confidentiality obligations, board meeting attendance requirements, and conflict of interest policies. It typically includes specific provisions about share ownership rules, decision-making authority, and the director's role in strategic planning - all tailored to comply with UAE corporate regulations and local business practices.

Use a Director Agreement when appointing new board members to your UAE company, especially during critical growth phases or when bringing in strategic expertise. This agreement becomes essential for companies expanding their board structure, setting up subsidiaries, or transitioning from private to public status.

Implementing a Director Agreement helps prevent disputes by establishing clear expectations upfront, particularly important in UAE free zones where governance standards are strict. Companies need this document when defining specific roles for executive directors, setting compensation packages, or bringing in independent directors to enhance corporate governance and meet regulatory requirements.

• Directors Contract Of Employment: For executive directors who also serve as employees, detailing dual role responsibilities and UAE labor law compliance
• Non Executive Director Agreement: Designed for independent board members, focusing on oversight duties without day-to-day management
• Medical Director Contract Agreement: Specialized for healthcare facilities, addressing clinical governance and DHA compliance
• Nominee Director Agreement: Used in corporate structures where a director acts on behalf of another entity, common in UAE free zones

• Board of Directors: Reviews and approves the final agreement terms, ensuring alignment with UAE corporate governance standards
• Corporate Legal Teams: Draft and customize agreements to comply with UAE Companies Law and free zone regulations
• Company Shareholders: Must approve director appointments and key agreement terms, especially in publicly listed companies
• External Legal Counsel: Often consulted to review complex agreements or provide specialized guidance on UAE regulatory requirements
• Company Secretary: Maintains official records and ensures proper execution of Director Agreements within corporate documentation

• Director Details: Gather full legal name, Emirates ID, passport details, and proposed role on the board
• Company Information: Compile trade license, corporate structure details, and free zone-specific requirements
• Role Specifics: Define exact responsibilities, meeting attendance requirements, and decision-making authority
• Compensation Package: Document all forms of remuneration, including fees, shares, and benefits
• Term Duration: Specify appointment period, renewal conditions, and termination clauses
• Template Generation: Use our platform to create a UAE-compliant agreement, ensuring all mandatory elements are included

• Appointment Terms: Clear statement of role, duties, and appointment duration under UAE Companies Law
• Fiduciary Duties: Detailed obligations regarding loyalty, care, and compliance with UAE corporate governance codes
• Remuneration: Comprehensive breakdown of fees, benefits, and any performance-based compensation
• Confidentiality: Specific provisions protecting company information under UAE data protection laws
• Termination Clauses: Clear conditions for ending the agreement, including notice periods
• Governing Law: Explicit reference to UAE law and relevant free zone regulations
• Conflict Resolution: Specified dispute resolution mechanisms and jurisdiction

A Director Agreement differs significantly from a Director Services Agreement in several key aspects under UAE law. While both documents govern relationships with directors, their scope and application vary considerably.

• Legal Status: A Director Agreement establishes board membership and governance responsibilities, while a Director Services Agreement focuses on specific professional services provided to the company
• Scope of Authority: Director Agreements grant broader corporate decision-making powers and fiduciary duties, whereas Services Agreements typically limit authority to particular projects or consulting work
• Duration and Termination: Director Agreements align with board terms and corporate governance rules, while Services Agreements usually follow project timelines or specific engagement periods
• Compliance Requirements: Director Agreements must meet UAE Companies Law and free zone regulations for board governance, while Services Agreements follow standard commercial contract rules