District of Columbia Agreement Between Board Member and Close Corporation

• Category: Contracts - Board Member
• State: Multi-State
• Control #: US-1035BG
• Format: Word; Rich Text

Description

A corporation whose shares are held by a single shareholder or a closely-knit group of shareholders (such as a family) is known as a close corporation. The shares of stock are not traded publicly. Many of these types of corporations are small firms that in the past would have been operated as a sole proprietorship or partner¬ship, but have been incorporated in order to obtain the advantages of limited liability or a tax benefit or both. A disclaimer is a denial or renunciation of liability. A disclaimer may apply to a denial of responsibility for another's claim and/or may be a statement of non-responsibility.

The District of Columbia Agreement Between Board Member and Close Corporation is a legal document that outlines the rights, responsibilities, and obligations of board members in a close corporation operating in the District of Columbia. This agreement serves as a contract between the board member(s) and the corporation, establishing guidelines for decision-making, management, and governing of the corporation's affairs. The agreement covers various key aspects, including the board member's roles and duties, voting rights, procedures for board meetings, conflict of interest policies, compensation, resignation or removal processes, and confidentiality provisions. It aims to provide clarity and ensure smooth functioning of the corporation by establishing a framework for effective corporate governance. There can be different types of District of Columbia Agreement Between Board Member and Close Corporation, depending on the specific requirements and nature of the corporation. Some common types may include: 1. Standard Agreement: This is the basic agreement that outlines general provisions related to board member's roles, responsibilities, and governing rules for the close corporation. 2. Compensation Agreement: In cases where board members receive compensation for their services, this type of agreement will specifically address the details of compensation, such as salary, bonuses, stock options, or other forms of remuneration. 3. Non-Disclosure Agreement: In situations where board members have access to sensitive or confidential information, a separate non-disclosure agreement may be required to protect the corporation's secrets. 4. Employment Agreement: While the primary focus of the agreement is on the role of the board member, in certain cases, an agreement may also contain employment-related provisions if the board member is also an employee of the corporation, covering aspects like job responsibilities, termination clauses, and benefits. 5. Succession Agreement: A succession agreement may be necessary to address issues related to the replacement or appointment of board members in the future when changes occur due to retirement, resignation, or other circumstances. It is crucial to draft the District of Columbia Agreement Between Board Member and Close Corporation with the assistance of legal professionals familiar with local laws and regulations to ensure compliance and accuracy. This agreement acts as an essential contractual tool to establish a clear understanding between board members and the close corporation they serve.