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Managing Director Contract Of Employment

Managing Director Contract Of Employment Template for Denmark

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Managing Director Contract Of Employment

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Document background
The Managing Director Contract Of Employment is essential for Danish companies appointing senior executives to lead their operations. This document is typically used when appointing managing directors, CEOs, or other senior executives who will have significant management responsibility and corporate authority. The contract addresses specific requirements under Danish law, including corporate governance obligations, executive duties, and compliance with the Danish Companies Act. It differs from standard employment contracts as managing directors are not typically covered by the Danish Salaried Employees Act, requiring careful consideration of terms regarding authority, responsibility, remuneration, and termination. The document is crucial for establishing clear parameters of executive employment while protecting both the company's and the executive's interests in accordance with Danish legal requirements.
Suggested Sections

1. Parties: Identification of the company and the managing director, including company registration details

2. Background: Brief context of the appointment and any relevant corporate approvals

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, effective date, and duration of appointment

5. Duties and Responsibilities: Core executive duties, reporting relationships, and authority limits

6. Time Commitment and Location: Working hours, place of work, and travel requirements

7. Remuneration: Base salary, review mechanisms, and payment terms

8. Bonus and Incentives: Performance-related compensation structures

9. Benefits and Expenses: Additional benefits, insurance, pension, and expense reimbursement

10. Holidays and Leave: Vacation entitlement and other leave provisions

11. Confidentiality: Protection of company information and trade secrets

12. Intellectual Property: Ownership and rights to work-related innovations and creations

13. Data Protection: GDPR compliance and personal data handling

14. Termination: Notice periods and grounds for termination

15. Post-Termination Obligations: Return of property and ongoing obligations

16. Governing Law and Jurisdiction: Confirmation of Danish law application and dispute resolution

Optional Sections

1. Board Positions: Required when the managing director will serve on company boards

2. External Appointments: Include when allowing or restricting outside business activities

3. Relocation Terms: Necessary for international appointments or relocations

4. Share Options: Include when offering equity-based compensation

5. Non-Compete Provisions: Used when implementing post-employment competition restrictions

6. Change of Control: Include for listed companies or where ownership changes are anticipated

7. Garden Leave: Include if the company wants the right to place the director on paid leave

8. Clawback Provisions: Include for regulated industries or performance-based compensation

9. International Travel: Required for roles with significant international responsibilities

Suggested Schedules

1. Schedule 1 - Remuneration Package: Detailed breakdown of salary, bonuses, and benefits

2. Schedule 2 - Job Description: Detailed scope of responsibilities and performance expectations

3. Schedule 3 - Company Policies: List of applicable company policies and procedures

4. Schedule 4 - Share Option Terms: Details of any share option or equity participation schemes

5. Schedule 5 - Performance Metrics: KPIs and bonus calculation methodology

6. Appendix A - Board Resolutions: Copies of relevant board approvals for the appointment

7. Appendix B - Insurance Coverage: Details of D&O insurance and other coverage provided

Authors

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Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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