The Director Employment Contract is a crucial document in Malaysian corporate governance, used when appointing both executive and non-executive directors to a company's board. This contract type must comply with the Malaysian Companies Act 2016, Employment Act 1955, and other relevant legislation, making it distinct from standard employment agreements. It typically includes comprehensive provisions covering appointment terms, duties, remuneration, benefits, confidentiality, and termination conditions. The document is essential for establishing clear legal relationships between the company and its directors, protecting both parties' interests, and ensuring compliance with regulatory requirements. It's particularly important for companies seeking to maintain good corporate governance and transparency in their board appointments, while also addressing specific Malaysian legal and regulatory considerations.
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Key Requirements PROMPT example:
Director Employment Contract
"I need a Director Employment Contract for our newly appointed Finance Director of a public listed company in Malaysia, compliant with Bursa Malaysia requirements, including share option schemes and performance-based bonuses, with the appointment starting March 1, 2025."
1. Parties: Identification of the company and the director, including registration/identification numbers
2. Background: Context of the appointment, including board resolution reference and basis of appointment
3. Definitions: Key terms used throughout the agreement, including 'Company', 'Board', 'Confidential Information', etc.
4. Appointment and Term: Position details, effective date, and duration (fixed-term or continuous)
5. Duties and Responsibilities: Core duties as director, compliance with Companies Act 2016, and specific role requirements
6. Time Commitment: Expected working hours, availability, and commitment to company affairs
7. Remuneration and Benefits: Base salary, bonuses, director fees, and standard benefits package
8. Leave Entitlements: Annual leave, medical leave, and other permitted absences
9. Expenses: Reimbursement policy and approved business expenses
10. Confidentiality: Protection of company information and trade secrets
11. Intellectual Property: Ownership of work product and innovations developed during directorship
12. Termination: Grounds for termination, notice periods, and procedures
13. Post-Termination Obligations: Continuing duties, return of company property, and handover requirements
14. Governing Law: Malaysian law as governing law and jurisdiction
15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Non-Competition: Restrictions on competing activities during and after employment - include for senior executive directors or in competitive industries
2. Share Options: Details of any share option schemes - include for listed companies or when equity participation is offered
3. International Travel: Special provisions for international duties - include if role requires significant overseas work
4. Multiple Directorships: Conditions for holding other directorships - include for independent directors or part-time appointments
5. Performance Metrics: Specific KPIs and performance evaluation criteria - include for executive directors or performance-based contracts
6. Corporate Governance: Additional governance requirements - include for listed companies or regulated industries
7. Insurance Coverage: Details of D&O insurance and other coverage - include for high-risk industries or listed companies
8. Relocation Terms: Provisions for relocation if applicable - include when director needs to relocate
1. Schedule 1 - Remuneration Package: Detailed breakdown of salary, allowances, and benefits
2. Schedule 2 - Job Description: Detailed role specifications and responsibilities
3. Schedule 3 - Company Policies: List of applicable company policies and procedures
4. Schedule 4 - Performance Bonus Structure: Details of performance-based compensation calculations
5. Schedule 5 - Share Option Terms: Terms and conditions of any share option schemes
6. Appendix A - Board Resolution: Copy of board resolution approving the appointment
7. Appendix B - Company Code of Conduct: Company's code of conduct and ethics
8. Appendix C - Statutory Declaration: Director's statutory declarations regarding eligibility and compliance
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