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Director Termination Letter Template for Singapore

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Director Termination Letter

"I need a Director Termination Letter for our Singapore-based tech company where our executive director is stepping down voluntarily effective March 1, 2025, and we need to include special provisions for their unvested stock options and ongoing advisory role."

What is a Director Termination Letter?

The Director Termination Letter serves as the official documentation of a director's departure from a company's board in Singapore. This document is essential when a director resigns, is removed, or their term ends. It must align with Singapore's Companies Act 1967 and corporate governance requirements. The letter typically includes the termination date, notice period, return of company property, ongoing confidentiality obligations, and any post-termination restrictions. It's crucial for maintaining proper corporate records and ensuring compliance with ACRA requirements. The Director Termination Letter also helps protect both parties' interests by clearly documenting the terms of separation.

What sections should be included in a Director Termination Letter?

1. Letter Date and Address Block: Formal letter heading with date and recipient details

2. Termination Statement: Clear statement of directorship termination and effective date

3. Notice Period: Specification of notice period and last day of service

4. Company Property Return: Requirements for returning company assets and documents

5. Ongoing Obligations: Statement of continuing duties and confidentiality obligations

What sections are optional to include in a Director Termination Letter?

1. Compensation Details: Details of final payments and benefits, used when director is also an employee

2. Share-Related Matters: Treatment of shares or stock options when director holds company shares

3. Non-Compete Provisions: Post-termination restrictions when protecting company interests is crucial

What schedules should be included in a Director Termination Letter?

1. Acknowledgment Form: For director to confirm receipt and acceptance of termination

2. Company Property Checklist: List of items to be returned to the company

3. Final Settlement Statement: Detailed breakdown of final payments if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ 红杏直播 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses

























Industries

Companies Act 1967: Primary legislation governing director removal/resignation, including notice periods, ACRA filing requirements, and minimum director requirements (at least one locally resident director)

Employment Act 1968: Relevant if director is also an employee - covers notice periods, outstanding salary/benefits, and treatment of unused leave

Securities and Futures Act: Applicable for listed companies - covers disclosure requirements and post-termination trading restrictions

Personal Data Protection Act 2012: Governs handling of personal data and confidentiality obligations during termination process

Corporate Governance Code: Applicable for listed companies - ensures compliance with governance requirements and board composition rules

Notice Period Requirements: Specific notice period obligations as per company constitution and relevant legislation

Company Property: Requirements for return of company assets, documents, and other property

Confidentiality Obligations: Post-termination confidentiality requirements and handling of sensitive information

Post-termination Restrictions: Non-compete, non-solicitation, and other restrictive covenants

Remuneration Settlement: Settlement of outstanding director fees, benefits, and other compensation

Directors Duties Handover: Process for transitioning director responsibilities and ongoing projects

Company Secretarial Requirements: Necessary filings with ACRA and updates to company registers

Share-related Matters: Handling of share ownership, options, or other equity-related considerations

Mutual Release Provisions: Terms for mutual discharge of liabilities and claims between director and company

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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