Do you want to formally appoint a director and ensure they know what is expected of them? This is best managed through an Appointment of Director letter. We can help you draft a form or a letter to appoint a director for your company.
A director does not need to be an employee; the law treats them differently. The courts have confirmed the distinction and dealt with overlapping rights and duties. Company law talks about the responsibilities of directors in no uncertain terms. The appointment of a director letter ensures that you comply with best practices regarding this important aspect of doing business.
The benefits of an appointment of a director
You don’t need to appoint directors through an appointment of director letter. But it would be best to do so. The letter makes the appointment much clearer and more formal. It also provides other benefits, including:
- Directors know what is expected of them
- Responsibilities of the directors are clear
- Certainty regarding fees and expenses
- All parties know how to resolve any disputes that may arise
Who does it apply to?
An appointment of director letter applies to:
- shareholders who want to appoint a director, or
- directors of all enterprises covered by the Companies Act.
It is important to remember that this letter is not the form you use to register the director with the companies office (for example the CoR39 CIPC form, which is the CIPC form is used to appoint a director with CIPC).
How can we help you?
We can draft an appointment of director letter for you. Our letters are up-to-date with applicable laws, rules, codes and standards (like the Companies Act). They are in an A4 electronic editable format and are three pages long.