INDEMNIFICATION AGREEMENT AND PROVISIONS

The indemnification agreement is a binding contract between the Company and its Directors and Secretary. What it does is that it requires the company to indemnify and hold harmless the Directors and the Secretary of the Company, so that, if any of the Directors or the Secretary is sued or named in a lawsuit as a result of their work for the Company this agreement would require the Company to be responsible.

If you have the agreement drafted while we are setting up the Company, we can add an indemnification provision directly into the Memorandum and Articles of Association. The Articles are a public record and anyone has access to them, so it is very important for that reason.

Second, and more importantly, by having the provision in the articles, you have proof filed with the state that the Company agreed to indemnify its Directors and Secretary from the time the Company was set up and not after something has gone wrong.

The Indemnification Agreement is only £75 if drafted while we are setting up the Company and that includes adding the extra provisions into the articles. It’s a one time fee and the agreement covers all Directors and the Secretary that are a part of the Company and also, could cover Directors and Secretaries added in the future. The Indemnification Agreement is £150 pounds if we draft the agreement separate from the Company filing and more importantly, the Articles filed with your company will not contain the indemnification provision.

Doesn't forming a company automatically give me all the protection I need?

When you form a Company, you as an owner enjoy limited liability. Meaning that your liability is generally limited to your investment in the Company. As soon as you step beyond that role and act as a director, Secretary or employee of the Company, you expose yourself to liability in those roles. You can be sued as a result of your own negligent actions. An indemnification agreement is intended to protect you in those circumstances. So that, if you ever get sued or named in a law suit as a result of your work for the company, this agreement will require the Company to be responsible for you. It is a way of giving you another layer of protection.

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REMEMBER, this service, along with many other services, are also available to you at any time from Spiegel & Utrera, Ltd.. If you only need the Indemnification Agreement, we can prepare the Indemnification Agreement for only £75 (plus VAT).

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