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In this tutorial, Steph Barber discusses the importance of a service agreement for company directors. The first key point is clarity; a service agreement acts like an employment contract, outlining roles and expectations for each director, especially in a multi-director setup. This ensures everyone understands their responsibilities in managing the company on behalf of shareholders, who may not be directors themselves. Additionally, the service agreement helps define compliance obligations and legal responsibilities that directors must uphold, such as promoting the company's success, as stipulated in the articles of association. Overall, these agreements are crucial for effective governance and clarity in a company's operations.
