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Director’s Service Contract Fixed Salary


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A Director’s Service Contract with a fixed salary is a formal agreement between a company and its director outlining the terms of their employment and remuneration. Under this arrangement, the director receives a set annual or monthly salary, regardless of company performance or profit. This differs from contracts based on commission, bonuses, or profit-sharing.

Yes, in most cases. While the fixed salary forms the guaranteed component of remuneration, the board or shareholders may approve additional payments

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