When a group proposes to a manager to become a corporate officer within a subsidiary, the temptation to accept is great... But one must understand all the implications because the decision can have significant consequences for the salaried manager.
All the more so as the employer sometimes asks the employee to resign from his employment contract before taking over the corporate mandate (typically LBO managers).
Since the legal guarantees offered to agents are practically non-existent, it is important that they be provided for contractually between the parties before the mandate comes into effect, if necessary in a formal mandate agreement.
In practice, Astaé is able to assess the whole situation and help the executive to negotiate the appropriate protections/guarantees with the shareholder , whether it concerns the remuneration package, the financial conditions of the termination or the benefit of "revocation" insurance, such as GSC.
It should be noted that, under the influence of Anglo-Saxon practices, directors' liability and D&O ("Directors & Officers") insurance as well as delegations of authority are also becoming key issues.