Document background
The Director Exit Agreement is a crucial document used when a member of the board of directors leaves their position, whether through retirement, resignation, or mutual agreement. This agreement, structured under Canadian federal and provincial laws, serves multiple purposes: it formally documents the termination of the director's board duties, establishes clear terms for final compensation and benefits, addresses the handling of confidential information and company property, and sets out any post-departure obligations or restrictions. The agreement typically includes provisions compliant with the Canada Business Corporations Act and relevant securities regulations, making it essential for public and private companies across various sectors. It helps minimize potential disputes by clearly defining the rights and obligations of both parties while ensuring proper corporate governance during leadership transitions.
