How Do I Draft an Impressive Appointment Letter for a Non-Working Director?

Dear Seniors, I have been asked to write a special appointment letter for the brother of a politically important person, to give us some leverage as a company. This person will receive a salary of one lakh and hold the designation of Director, Development. However, he will never come to the office or perform any work. His appointment letter must appear impressive, but it should not contain any regulations.

I began editing our standard format, but I had to eliminate 80% of it, and now it no longer looks impressive. I am seeking a format or some guidance on how to proceed.

Thank you.

Regards,
Sadi.

I appreciate your effort and interest in improving yourself. It doesn't matter for whom we issue a letter; what matters is how standard our communications are. Your effort cannot be overshadowed by the halo of reasons but by purpose. Please use official language rather than business jargon, such as "bottom-line" and "agility."

Guidelines for Communication

The terms need to be published with clear details, including steps on non-adherence, such as guidelines for internal trading or data security. You can read various formats in this community and then research the best for your firm.

Trust this helps!

Thank you.

Actually, for such an appointment and for the purpose you are doing it, just make a normal appointment letter that you would make for any employee at the director level. It does not matter what the terms say about attendance, etc. He knows you can't take action against him or deny his pay. So what you write does not matter.

Keeping the normal wording for the letter would ensure that it does not look any different from a normal employment, which may be important in any investigation by the authorities.

Keeping a designation of "Non-Executive Director" as suggested by Harsh makes a lot of sense.

I see the issue from a totally different angle. Ours is a professional forum meant to address professional queries and support best practices. Issuing a 'special' appointment letter to someone for the wrong reasons may not be in the best interest of the nation or the people. Perhaps there are certain short-term benefits attached to the plan, but in the long run, the industry, business, and professional education will take a beating.

Thanks,
Robin Thomas

You just need to address him and inform him that he has been appointed as a consultant and designated as Director (Development) on a consolidated consultation fee of one lakh per month for a period of one year. This appointment can be extended from time to time based on mutual terms and conditions. He should abide by all the terms and decisions taken by management regarding his consultancy services from time to time. This is a proper and risk-free arrangement.

For a company registered under the Companies Act 1956, the appointment of a director takes place by a Board Resolution prepared by the Company Secretary of the company. Therefore, an appointment letter can be skipped with that of a board resolution.

Hope it will help.

Regards,
Saurabh Shyamsukha
HR Manager
RDB Regent Retail Ltd.

It is not a big issue. You will have to adhere to the routine appointment letter. Ensure that the wording for his position should be "Non-Executive Director." However, you should also include the severance clause to avoid litigations at a later date.

What your company is looking for is a short-term benefit and should not turn into a Frankenstein monster.