Service contract of directors

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  • Avatar of sk1989
    Anonymous
    • Topics: 14
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    Hey werty:

    It was mentioned in one of the provisions of Combined Code that the service contract of the directors should be kept at one year or less. Could you briefly explain the logic behind this?

    Also, I have noticed that the kits do not contain a lot of past paper questions. Would it be OK if I skip the kits and just do the past papers?

    Thanks,

    Best wishes,
    SK


    Avatar of MikeLittle
    MikeLittle
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    Yes, it’s so that companies don’t have to pay enormous payouts in case they remove a director! Incidentally, the contract can be longer than 1 year, so long as the notice period to break the contract does not exceed 1 year

    The kit also contains some “Examiner questions” and some of the publishers’ own questions. I think I would look at both – but if finance is a problem, past qs from past exams should be enough

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