Document background
The Directors Service Agreement is a fundamental document used when appointing managing directors or board members in Austrian companies, whether in the form of a GmbH (limited liability company) or AG (stock corporation). This agreement is essential for establishing clear parameters of the directorship, ensuring compliance with Austrian corporate law, and protecting both the company's and director's interests. It encompasses crucial elements such as appointment terms, duties, remuneration, benefits, and termination provisions, while addressing specific requirements under Austrian legislation including social security obligations and tax considerations. The document is particularly important as directors in Austria often fall outside standard employment law protections, necessitating comprehensive contractual coverage of their rights and obligations. It should be tailored to reflect the company's size, industry-specific requirements, and corporate governance structure while maintaining compliance with relevant Austrian regulations and corporate governance codes.
