What kind of benefits does someone get by being on the Board of Directors?
Updated: Mar 12, 2019
... and is there any potential liabilities in offering such benefits?
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The answer in short
Small (monetary) gifts or perks are ok but make sure it's not to be confused with an employment arrangement
Compensation to directors could be in the form of monetary benefits e.g. director’s allowance paid each time director attend directors meetings, or it could be paid monthly, or heavily discounted on the Company’s product/services, etc. - there is no legal restrictions. It is advised that a director’s compensation should be refrained from an employment-like offer, unless of course, the director is to also work for the Company as an employee. There is no obvious liability unless an offer is confused with it being employment-like arrangement, which the Company may be subject to comply with HR/Employment rules and regulations. This could then be considered as the Company’s liability.