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A Director Services Agreement spells out the formal relationship between a company and its director in Malaysia, covering their duties, compensation, and obligations. It's commonly used by both public listed companies and private entities to establish clear terms for director appointments, especially when complying with Companies Act 2016 requirements.

Beyond basic remuneration details, this agreement typically addresses confidentiality obligations, performance expectations, and termination conditions. It protects both parties by clearly defining the director's role, including their participation in board meetings, strategic planning, and corporate governance responsibilities in line with Bursa Malaysia's listing requirements.

Use a Director Services Agreement when bringing new directors onto your Malaysian company's board, especially during critical growth phases or corporate restructuring. It's essential when appointing independent directors to public listed companies, or when directors take on specific roles like chairing board committees.

The agreement becomes particularly important for companies expanding operations, entering new markets, or facing increased regulatory scrutiny. It helps prevent disputes by clearly documenting director responsibilities, confidentiality requirements, and compensation terms upfront. Many companies implement these agreements during IPO preparation or when strengthening their corporate governance framework to meet Bursa Malaysia's requirements.

• Executive Director Agreements: Detailed contracts for full-time directors involved in daily operations, covering executive duties and management responsibilities
• Non-Executive Director Agreements: Focused on governance and advisory roles, with lighter operational commitments but strong oversight duties
• Independent Director Agreements: Emphasize independence requirements under Bursa Malaysia guidelines, including specific provisions for conflict management
• Nominee Director Agreements: Tailored for directors representing specific shareholders or stakeholder interests, with clear reporting obligations
• Committee Chair Agreements: Enhanced scope for directors leading board committees, detailing additional responsibilities and compensation

• Company Directors: The primary parties bound by Director Services Agreements, including executive, non-executive, and independent directors who must fulfill specified duties
• Board of Directors: Reviews and approves the agreements, ensuring alignment with company strategy and governance requirements
• Company Secretary: Maintains official records and ensures compliance with Companies Act 2016 requirements
• Corporate Legal Teams: Draft and customize agreements to protect company interests while meeting regulatory standards
• External Legal Counsel: Often consulted for complex agreements, especially for public listed companies under Bursa Malaysia's purview

• Director Details: Gather full legal name, IC/passport number, residential address, and proposed role classification (executive/non-executive)
• Appointment Terms: Define start date, duration, board committee assignments, and reporting structure
• Compensation Package: Document director fees, meeting allowances, benefits, and any performance-based incentives
• Company Requirements: Review constitution, board charter, and corporate governance policies
• Regulatory Compliance: Check Bursa Malaysia listing requirements and Companies Act 2016 provisions for director qualifications
• Document Generation: Use our platform to create a legally-sound agreement that incorporates all mandatory elements automatically

• Party Details: Full legal names, registration numbers, and addresses of both company and director
• Appointment Terms: Role description, duration, and board committee responsibilities
• Duties and Powers: Specific obligations under Companies Act 2016 and company constitution
• Remuneration Structure: Fees, allowances, benefits, and payment terms
• Confidentiality Provisions: Protection of company information and trade secrets
• Termination Clauses: Notice periods, grounds for termination, and post-directorship obligations
• Compliance Requirements: References to Bursa Malaysia listing rules and corporate governance code
• Dispute Resolution: Malaysian jurisdiction and applicable dispute settlement procedures

A Director Services Agreement differs significantly from a Director Appointment Agreement in several key aspects, though they're often confused in Malaysian corporate practice. While both documents relate to director roles, their scope and application vary considerably.

• Scope and Detail: Director Services Agreements are comprehensive documents covering ongoing responsibilities, compensation structures, and performance expectations, while Appointment Agreements primarily focus on the initial appointment terms and basic qualifications
• Duration and Purpose: Services Agreements govern the entire service relationship throughout a director's tenure, whereas Appointment Agreements mainly handle the formal appointment process and initial terms
• Legal Requirements: Services Agreements include detailed compliance obligations under Companies Act 2016 and Bursa Malaysia's listing requirements, while Appointment Agreements typically contain basic statutory compliance matters
• Contractual Elements: Services Agreements include extensive provisions on confidentiality, non-compete clauses, and intellectual property rights, which are usually minimal or absent in Appointment Agreements