The Director has several fiduciary functions that are implicit in the service agreement of a Director or Non-Executive Director. The problem is that all implicit conditions are limited. There are obligations that are set out in the Companies Act, but they are often difficult to enforce in practice. Even if a director is not an employee of the company, but, for example, a non-executive director, he still needs a service contract for directors to cover his non-executive functions. The service contract should look at salary and bonus provisions. The permutations are wide. Beyond these factors, a service contract for a director creates compensation security.