I am pleased to confirm that the board of the Company, on the recommendation of its nomination committee, has appointed you as a non-executive director. I am writing to set out the terms of the appointment. Please note that this is a contract for services and is not a contract of employment.
Duration of Appointment
The appointment is for an initial term of three years commencing on [date], contingent on your re-election at forthcoming annual meetings and on the appointment not otherwise terminating in accordance with the Company’s constitution or by law.
Non-executive directors are typically expected to serve two three year terms, although the board may invite you to continue on as a director for an additional period thereafter.
Role of the Board
The board’s role is to effectively represent, and promote the interests of, shareholders with a view to adding long-term value to the Company’s shares. Having regard to its role the board directs, and supervises the management of, the business and affairs of the Company including, in particular:
• ensuring that the Company’s goals are clearly established, and that strategies are in place for achieving them;
• establishing policies for strengthening the performance of the Company including ensuring that management is proactively seeking to build the business through innovation, initiative, technology, new products and the development of its business capital;
• monitoring the performance of management;
• Appointing the chief executive officer, setting the terms of their employment agreement and, where necessary, terminating their employment.
• deciding on whatever steps are necessary to protect the Company’s financial position and the ability to meet its debts and other obligations when they fall due, and ensuring that such steps are taken;
• ensuring that the Company’s financial statements are true and fair and otherwise conform with law;
• ensuring that the Company adheres to high...