If you need to part company with a director, for the good of the business, it may not be appropriate to follow your disciplinary procedure. Gill Reid, Head of Employment in York & Wetherby, looks at the issues you should consider, especially if you need to achieve a quick exit with minimal disruption to the business and no publicity.
Reason for the termination
Two of the most common reasons for terminating a director's contract are poor performance, leading to the board losing confidence in the director, and a personality clash.
You should first decide what the reason is for the exit, as it will have an impact on the claims the executive may have and therefore on the level of compensation you could have to pay. For example, you must consider whether the director has…