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A Directors' Service Contract or 'DSC' is fundamentally an employment contract which covers standard clauses related to such employee rights and entitlements, but also includes further provisions covering matters specific to the role of the director.
These directors are often called 'executive directors' and are usually (although not always) employees of the companies for whom they work. As such, they are entitled to have a written contract of employment, just like other team members.
Service contracts define what is expected by the person providing the service and the person or business paying for the service to be performed. As a result, a service agreement can protect both parties.
Corporations are not required to adopt bylaws in Michigan. However, setting forth a comprehensive set of bylaws will benefit the corporation greatly by outlining the manner in which directors and officers are appointed, how meetings are scheduled, and policies regarding profit distribution.
A Director's service agreement is a contract that sets out the terms that a company director works under. Directors are key people within a company and it is essential to make sure their contracts are clear about their rights and responsibilities.
A service agreement is a written agreement between the business and a senior employee / director. In fact service agreement is just a fancy name for a contract of employment; but a service agreement tends to have more comprehensive terms and tends to use more formal language than the standard contract of employment.
A Directors' Service Contract or 'DSC' is fundamentally an employment contract which covers standard clauses related to such employee rights and entitlements, but also includes further provisions covering matters specific to the role of the director.
You are not required to file bylaws with the state, but the corporation must keep a copy at its principal place a business.
The relationship between you and your employee is a contract of service, but the relationship between you and an independent contractor is a contract for service. The differences are subtle, but important. An employee usually works as the employer directs them.
Executive Directors should have a written employment contract. Non- Executive Directors are not employees for the purposes of Employment Law, but should still have a written letter of appointment.