Document background
The Exit Agreement For Director is a crucial document used when a director ceases their relationship with a Philippine corporation, whether through resignation, retirement, or mutual agreement. This document is essential for ensuring a clear and compliant separation process in accordance with Philippine corporate law, particularly the Revised Corporation Code and Labor Code. It typically becomes necessary when a director's tenure is ending, requiring formal documentation of the separation terms, final settlements, and ongoing obligations. The agreement covers vital aspects such as board resignation, compensation settlement, confidentiality requirements, and release of claims, while ensuring compliance with Philippine securities regulations if share ownership is involved. It serves to protect both the corporation and the departing director by clearly defining their rights and obligations post-separation, preventing future disputes, and maintaining proper corporate governance records.
