Letter to director

To discuss termination of directorship
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Document overview

Polite yet formal letter suitable for anyone looking to dis-engage a director employee. Aids compliance with relevant employment legislation.
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  • England & Wales
  • Scotland
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  • Length:2 pages (500 words)
  • Available in:
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About this document

All Net Lawman company documents have been amended to comply with the Companies Act 2006.

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

Frank is Finance Director. He has been promoted internally, and still has a continuous, not a fixed term, contract. The considerations of the chairman in drafting this carefully crafted letter to Frank were:

  • 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.
Sample letter to directorSample page from the termination letter to director

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Recent reviews

Well Priced Service
20 December 2021
This was the letter we had been looking for and expecting to pay £200+ for a solicitor to do it for us so £6 was prefect.
Anthony Chalkley

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