Document background
The Director Fee Agreement serves as a crucial governance document in Canadian corporate practice, establishing the formal compensation arrangement between a company and its board directors. This agreement is essential for both public and private companies to ensure transparency and compliance with corporate governance requirements. It is typically implemented upon the appointment of a new director or when updating existing compensation arrangements. The agreement comprehensively addresses all aspects of director compensation, including basic fees, committee fees, expense reimbursement, and any equity-based compensation. The document must comply with relevant Canadian federal and provincial corporate laws, securities regulations (for public companies), and tax requirements. A well-structured Director Fee Agreement helps prevent misunderstandings, ensures proper disclosure, and provides clear documentation for corporate records and regulatory compliance.
