Letter to director: to discuss termination of directorship

Polite yet formal letter suitable for anyone looking to dis-engage a director employee. Aids compliance with relevant employment legislation.
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About this document

This document is suitable for any company chairman looking to part company with a board member who is also an employee. It allows for amendments and options to choose so that the document suits your unique circumstances.

As any experienced chairman knows, there can be few tasks more difficult than to arrange the departure of a board colleague. This is all the more difficult in this case, where the director is Finance Director and responsible for the entire financial function of the Company. Of course if the employee director is not the finance director, simply delete the relevant paragraphs.

The Chairman’s strategy: Net Lawman cannot provide a “one size fits all” solution or document for this situation. In this example letter, the chairman is aware of the pitfalls to an employer of the employment legislation at large. What he tries to do is to take a low key approach which protects the position of the Company, and yet which prompts Frank to see that his best course is to approach a solicitor and negotiate a settlement. At this stage he takes great care to make clear that Frank's employment is not at issue.

Application and features

  • To achieve his aim of procuring Frank, s departure from the board and from the Company too, at least cost and with least disruption
  • To avoid handing to Frank a successful claim for unfair dismissal
  • To avoid Frank considering he has a claim for constructive dismissal
  • To avoid a contractual claim by Frank for breach of contract
  • To avoid a public argument or adverse publicity which might affect his company's share price

Contents

  • Formal letter in plain English, terminating directorship using carefully thought out strategies
Draftsman

This document was written by a solicitor for Net Lawman. It complies with current Irish law.

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