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Director Employment Contract Template for Denmark

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Director Employment Contract

Document background
The Director Employment Contract is a crucial document used when appointing executive-level directors in Danish companies. It serves as the primary agreement governing the employment relationship between a company and its director, ensuring compliance with Danish corporate law, particularly the Danish Companies Act (Selskabsloven) and relevant employment regulations. This document is essential for both listed and private companies in Denmark, providing clear terms regarding responsibilities, remuneration, and obligations while protecting both parties' interests. It should be used when appointing new directors or formalizing existing director relationships, and typically requires board approval before execution. The contract addresses specific Danish legal requirements regarding executive employment, corporate governance, and regulatory compliance.
Suggested Sections

1. Parties: Identification of the company and the director, including full legal names and addresses

2. Background: Context of the appointment and any relevant corporate approvals

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, effective date, and duration of appointment

5. Duties and Responsibilities: Core duties, reporting lines, and key responsibilities as director

6. Time Commitment: Expected working hours and availability requirements

7. Location: Primary work location and travel requirements

8. Remuneration: Base salary, review process, and payment terms

9. Bonuses and Incentives: Performance-related pay and bonus schemes

10. Benefits: Standard benefits package including insurance, pension, etc.

11. Expenses: Policy on business expenses and reimbursement

12. Holidays and Leave: Holiday entitlement and other leave provisions

13. Confidentiality: Protection of company confidential information

14. Intellectual Property: Ownership of IP created during employment

15. Data Protection: Compliance with GDPR and Danish data protection laws

16. Termination: Grounds for termination and notice periods

17. Post-Termination Obligations: Ongoing obligations after employment ends

18. Governing Law and Jurisdiction: Confirmation of Danish law governance and dispute resolution

Optional Sections

1. Corporate Governance: Additional provisions for listed companies subject to corporate governance codes

2. Share Options: Terms of any share option or equity participation schemes

3. International Travel: Specific provisions for roles requiring significant international travel

4. Subsidiary Directorships: Terms for appointments to group company boards

5. Non-Compete Clauses: Post-employment competition restrictions (if applicable)

6. Relocation Package: Terms for international directors requiring relocation

7. Regulatory Compliance: Specific provisions for regulated industries

8. Change of Control: Provisions addressing company ownership changes

9. Gardening Leave: Terms for garden leave during notice period

Suggested Schedules

1. Schedule 1 - Duties and Responsibilities: Detailed list of director's duties and responsibilities

2. Schedule 2 - Remuneration Package: Detailed breakdown of all compensation elements

3. Schedule 3 - Benefits: Comprehensive list of benefits and their terms

4. Schedule 4 - Bonus Scheme Rules: Detailed rules and calculations for bonus payments

5. Schedule 5 - Share Option Terms: Detailed terms of any share option scheme

6. Schedule 6 - Expenses Policy: Company's policy on expense claims and limits

7. Appendix A - Board Resolution: Copy of board resolution approving the appointment

8. Appendix B - Job Description: Detailed position description and requirements

Authors

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Relevant Industries
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Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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