Hiring and appointing directors in India is governed by the Indian Companies Act, 2013 and charter documents of the company such as the articles of association. While the said legislation defines the different types of directors, such as executive, independent and additional director including their powers, tenure and appointment procedures, the articles of association further strengthen the said provisions. It is for this reason that an employment agreement executed to appoint a director will have to be prepared in consonance with the Companies Act and AoA so as not to override or violate any provision therein. A director’s employment agreement specifies the director’s status as an independent, executive or non-executive director and also specifies the director’s powers, role and responsibility, besides other legal issues like indemnification, breach etc. You could view a sample director’s appointment agreement hereunder and order one for your organization each time you induct a director.
