Letter to Members re Director’s Proposed Long Term Service Contract (s.188)

This is a template letter to members informing them that the company proposes to enter into a long-term service agreement with a director. Under section 188 of the Companies Act 2006, directors’ service contracts with a guaranteed term which is (or maybe) longer than 2 years must be approved by an ordinary resolution of the shareholders of the company. In addition, a resolution under section 188 must not be passed unless a memorandum setting out the proposed contract incorporating the term is made available to members (s.188(5)).

This cover letter should be sent to members enclosing the proposed (written) resolution to approve such term, as well as the memorandum.

The document is in open format. Fields should be completed where indicated. Wording in square brackets is optional and can be deleted or retained according to requirements.

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Letter to Members re Director’s Proposed Long Term Service Contract (s.188) is part of Corporate Documents. Just £35.00 + VAT provides unlimited downloads from Corporate Documents for 1 year.