Virgin Islands 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 Virgin Islands Agreement Between Board Member and Close Corporation is a legal document that outlines the terms and conditions between a board member and a close corporation in the Virgin Islands. This agreement serves to establish the rights, responsibilities, and obligations of the board member and the close corporation. Key components of the agreement typically include the following: 1. Board Member's Roles and Responsibilities: This section outlines the specific roles and responsibilities of the board member within the close corporation. It may include details such as attendance requirements, meeting participation, decision-making authority, and any specific tasks assigned to the board member. 2. Term of Agreement: The agreement specifies the duration for which the board member will serve and if there are any renewable terms or a fixed term limit. This ensures clarity regarding the length of their commitment to the close corporation. 3. Compensation and Benefits: This section addresses the compensation and benefits that the board member will receive for their services. It may include details about salary, bonuses, stock options, or other financial incentives. Additionally, any expenses that will be reimbursed to the board member, such as travel expenses, should be mentioned. 4. Confidentiality and Non-Disclosure: To protect the close corporation's interests, this section highlights the importance of confidentiality. It may include clauses requiring the board member to keep certain information confidential, including trade secrets, sensitive financial data, and other proprietary information. 5. Conflict of Interest: This part ensures that the board member will act in the best interest of the close corporation and avoids any conflicts of interest. It may include provisions that prevent the board member from engaging in activities or relationships that could compromise their objectivity or loyalty to the close corporation. Different types of Virgin Islands Agreement Between Board Member and Close Corporation may include: 1. Non-Executive Board Member Agreement: This type of agreement is designed for board members who do not hold executive positions within the close corporation. It focuses more on the board member's oversight and advisory role and may have certain variations in terms compared to an agreement for executive board members. 2. Executive Board Member Agreement: This agreement specifically caters to board members who also hold executive positions within the close corporation. It includes additional sections concerning their responsibilities as executives, compensation structure, and may have specific performance metrics tied to their roles. 3. Independent Board Member Agreement: In cases where a close corporation wishes to have an independent board member who is neither a shareholder nor an employee, this agreement serves to outline the distinct responsibilities and defines the independence requirements for the board member. It is important to consult a legal professional or an attorney familiar with the Virgin Islands corporate law to ensure that the agreement complies with all legal requirements and adequately protects the interests of both the board member and the close corporation.

The Virgin Islands Agreement Between Board Member and Close Corporation is a legal document that outlines the terms and conditions between a board member and a close corporation in the Virgin Islands. This agreement serves to establish the rights, responsibilities, and obligations of the board member and the close corporation. Key components of the agreement typically include the following: 1. Board Member's Roles and Responsibilities: This section outlines the specific roles and responsibilities of the board member within the close corporation. It may include details such as attendance requirements, meeting participation, decision-making authority, and any specific tasks assigned to the board member. 2. Term of Agreement: The agreement specifies the duration for which the board member will serve and if there are any renewable terms or a fixed term limit. This ensures clarity regarding the length of their commitment to the close corporation. 3. Compensation and Benefits: This section addresses the compensation and benefits that the board member will receive for their services. It may include details about salary, bonuses, stock options, or other financial incentives. Additionally, any expenses that will be reimbursed to the board member, such as travel expenses, should be mentioned. 4. Confidentiality and Non-Disclosure: To protect the close corporation's interests, this section highlights the importance of confidentiality. It may include clauses requiring the board member to keep certain information confidential, including trade secrets, sensitive financial data, and other proprietary information. 5. Conflict of Interest: This part ensures that the board member will act in the best interest of the close corporation and avoids any conflicts of interest. It may include provisions that prevent the board member from engaging in activities or relationships that could compromise their objectivity or loyalty to the close corporation. Different types of Virgin Islands Agreement Between Board Member and Close Corporation may include: 1. Non-Executive Board Member Agreement: This type of agreement is designed for board members who do not hold executive positions within the close corporation. It focuses more on the board member's oversight and advisory role and may have certain variations in terms compared to an agreement for executive board members. 2. Executive Board Member Agreement: This agreement specifically caters to board members who also hold executive positions within the close corporation. It includes additional sections concerning their responsibilities as executives, compensation structure, and may have specific performance metrics tied to their roles. 3. Independent Board Member Agreement: In cases where a close corporation wishes to have an independent board member who is neither a shareholder nor an employee, this agreement serves to outline the distinct responsibilities and defines the independence requirements for the board member. It is important to consult a legal professional or an attorney familiar with the Virgin Islands corporate law to ensure that the agreement complies with all legal requirements and adequately protects the interests of both the board member and the close corporation.