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A Director Agreement spells out the rights, duties, and expectations between a company and its board member in Saudi Arabia. It covers key items like compensation, confidentiality requirements, and the director's role in corporate governance according to the Kingdom's Companies Law.

This legally binding contract protects both sides by clearly stating meeting attendance requirements, share ownership rules, and conflict of interest policies. Saudi companies commonly use these agreements to ensure their directors comply with Capital Market Authority regulations and Sharia principles while helping guide important business decisions.

Use a Director Agreement when appointing new board members to your Saudi company, especially during key transitions like IPOs, mergers, or significant corporate restructuring. This agreement becomes essential when bringing on directors with specialized expertise or when expanding operations into regulated sectors under CMA oversight.

The timing matters most during formation of joint stock companies, family business professionalization, or when adding independent directors to meet governance requirements. Having this agreement in place before directors begin their duties helps prevent misunderstandings about roles, responsibilities, and compensation while ensuring compliance with Saudi corporate law.

• Managing Director Contract Of Employment: For executive directors handling day-to-day operations, detailing specific management duties and KPIs
• Directors Service Agreement: Comprehensive agreement for full-time board members, covering governance and operational responsibilities
• Non Executive Director Agreement: Tailored for part-time advisors providing oversight and strategic guidance
• Medical Director Contract Agreement: Specialized for healthcare facility directors, addressing clinical governance and medical standards
• Directors Loan Agreement: Governs financial arrangements between directors and the company, including terms for loans and repayment

• Board Members: The primary signatories who agree to serve as directors, accepting specific duties and responsibilities under Saudi corporate law
• Company Shareholders: Vote to approve director appointments and review agreement terms to ensure alignment with company interests
• Legal Counsel: Draft and review Director Agreements to ensure compliance with CMA regulations and Sharia principles
• Corporate Secretary: Maintains official records and ensures proper execution of agreements
• Ministry of Commerce: Reviews agreements for compliance with Saudi Companies Law during company registration or updates
• External Auditors: Verify director compensation and related party transactions outlined in agreements

• Director Details: Gather full legal name, ID/Iqama number, and professional qualifications of the appointed director
• Company Information: Compile commercial registration details, board resolutions approving appointment, and shareholder approvals
• Role Specifics: Define exact duties, meeting attendance requirements, and any committee responsibilities
• Compensation Terms: Document agreed salary, bonuses, allowances, and any share-based incentives
• Compliance Check: Review CMA regulations and Companies Law requirements for director qualifications
• Term Duration: Specify appointment period, renewal conditions, and termination procedures
• Document Generation: Use our platform to create a customized, legally-sound agreement that meets Saudi legal requirements

• Party Details: Full legal names, commercial registration numbers, and authorized signatories of both company and director
• Appointment Terms: Board position, duration, and specific roles aligned with Saudi Companies Law requirements
• Duties Section: Detailed responsibilities, meeting attendance, and compliance with Sharia principles
• Compensation Structure: Remuneration, benefits, and expense policies following CMA guidelines
• Confidentiality Provisions: Protection of company secrets and intellectual property
• Conflict Resolution: Saudi arbitration procedures and applicable jurisdiction clauses
• Termination Terms: Notice periods, grounds for termination, and post-directorship obligations
• Regulatory Compliance: References to relevant Saudi corporate governance codes and regulations

A Director Agreement differs significantly from a Director Services Agreement in Saudi Arabia. While both documents govern board relationships, their scope and application vary considerably in practice.

• Scope of Authority: Director Agreements establish broad governance rights and duties within the board structure, while Director Services Agreements focus specifically on operational services and deliverables
• Compensation Structure: Director Agreements typically include board fees and shareholding rights, whereas Director Services Agreements detail service-based compensation and performance metrics
• Term Duration: Director Agreements align with board appointment periods under Saudi Companies Law, while Director Services Agreements often follow project or service-specific timeframes
• Regulatory Compliance: Director Agreements must satisfy CMA governance requirements and Sharia principles, while Director Services Agreements focus more on operational and commercial compliance