Document background
The Director Appointment Agreement is a fundamental governance document used when appointing new members to a company's board of directors in Saudi Arabia. It serves as the primary contract between the company and the incoming director, establishing their rights, duties, and obligations in accordance with Saudi Companies Law and CMA regulations. This agreement is essential for both listed and private companies, providing a clear framework for director appointments and ensuring compliance with local legal requirements. The document typically includes detailed provisions on appointment terms, remuneration, confidentiality, conflicts of interest, and termination procedures, while also incorporating specific Saudi Arabian legal and regulatory requirements. It's particularly important given the increasing focus on corporate governance in the Kingdom and the need for transparent board operations.
