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In this tutorial, Steph Barber discusses the importance of a service agreement for company directors. He highlights two key reasons for having such an agreement. First, it provides clarity regarding roles and responsibilities among directors, ensuring that each knows what is expected and how the company operates. Directors are tasked with the daily management of the company on behalf of shareholders, who are not automatically directors. Secondly, a service agreement outlines the compliance obligations and responsibilities of directors, such as their legal duty to promote the company's success. Overall, a well-defined agreement is crucial for effective governance and clarity in roles.