Director Agreement

Create quality director agreements with instant document builder of Lawpath. Set clear director appointment terms, services, and pay. Draft yours now!

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Last updated November 11, 2025

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Suitable for Australia

Director Agreement

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What is a director agreement ?

A director agreement is a legal contract outlining the terms, responsibilities, and remuneration for a director’s role within a company. It sets clear expectations and formalises the relationship between the director and the company.
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When should you use a director agreement ?

You should use a director agreement whenever appointing a new director to your company to ensure all parties understand their rights, duties, and compensation. It is essential for both single and multiple-director companies.
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What should be in a director agreement ?

A director agreement should cover appointment terms, duties, remuneration, resignation or dismissal conditions, confidentiality, leave entitlements, and any restrictions such as non-compete or non-solicit clauses.
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Frequently asked questions

Who can be appointed under this agreement?

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Does this agreement make a director an employee?

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What protections does this agreement provide for the company?

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What are the main limitations of this agreement?

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Can this agreement be used in all Australian states and territories?

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How long does it take to complete this agreement?

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What steps should I take after completing the agreement?

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View Sample Director Agreement

Director Agreement
risk level indicator at Low level

The Legal Risk Score of a Director Agreement Template is Low

Our legal team have marked this document as low risk considering:

  • The document grants the board of directors considerable discretion in determining and delegating the specific powers and rights of the director, which could lead to uncertainty about the director's role and responsibilities.
  • The director's obligation to devote their entire business hours to the company without entitlement to additional remuneration beyond the specified salary and superannuation could be restrictive and potentially unappealing for prospective directors who might seek more flexible or lucrative arrangements.
  • The director’s entitlements to holidays and other leave are subject to the approval of the board, which may limit the director's ability to freely plan and take leave according to personal or professional needs.

Meet Our Users

Articles about Director Agreement

How to Deal with Director Disputes in Your Company
By Gopi Giri|Sep 17, 2019

How to Deal with Director Disputes in Your Company

Director disputes are highly common. They can significantly impact the workplace and a company's performance. Here are some ways to deal with them.

6 Key Duties of Company Directors in Australia
By Mai Sarkissian|Nov 26, 2025

6 Key Duties of Company Directors in Australia

All company directors in Australia have to abide by directors duties as outlined in the Corporations Act. Find out more here.

What Are Director Fees?
By Timothy Quinn|Aug 20, 2024

What Are Director Fees?

Learn all about director fees and how to manage the tax obligations that arise from these payments.

How to Pay Yourself as a Company Director: A Complete Guide
By Ilyas Omari|May 28, 2025

How to Pay Yourself as a Company Director: A Complete Guide

Can you pay yourself if you're a company director? Read along to know the various options available to you and pay yourself like a pro.

What Is An Alternate Director? (2025 Update)
By Bronte Callaghan|May 14, 2025

What Is An Alternate Director? (2025 Update)

If a director is unable to exercise their functions, they can appoint an alternate director for a period of time. Read more here.

How Can You Remove A Director From Your Company?
By Ilyas Omari|May 28, 2025

How Can You Remove A Director From Your Company?

Do you plan to remove a director from your company? Here is a guide on how to legally remove a director from your company

Directors’ Roles in Shareholders Agreements
By Gopi Giri|Dec 4, 2025

Directors’ Roles in Shareholders Agreements

There's no one correct form of shareholders agreement. This raises the question, what should you include in your shareholders agreement? Find out here.

How Do I Add A Director to My Company?
By Lily O'Keefe|May 28, 2025

How Do I Add A Director to My Company?

Find out how to appoint a new director to your company.

Nominee Directors: Duties & Compliance (Australia)
By Edwin Montoya Zorrilla|Dec 5, 2025

Nominee Directors: Duties & Compliance (Australia)

Learn about the role of a nominee director in Australia, including their duties, legal obligations, and potential liabilities.

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