The Companies Act 2006 (CA 2006) requires any provision by a director's service compact under which the guaranteed term of the director's employment is, or maybe be, more than two years to be subject to enrollment by and members of the companies. Approval is required as long time service contracts with directors are arrangements which represent generally considered to be particularly open to abuse. The relationship between the statutory provisions requiring approval of such a provision and the general duties on a director that are set out by statute is discussed in Practice Hint: Directors' duties—fundamentals.

An definition ‘director’, to the purpose of these statutory terms, comprise either person occupying the position of director, through whatever name called (ie whatever the official title used), or a shadow director.

A company must observe various other statutory requirements In relation to directors’ service contracts, visit in particularly Practice Note: Directors’ service contracts—retention, copying plus inspection.

Companies with an premium listing of equity shares on of Official List of of London Stock Exchange (listed companies) what also research toward the Listing