Knowing the Responsibilities of a Nominee Director
What is nominee director? And what role they play? Primarily, companies consider using a nominee director for protecting the identity of the individual who desires to pilot the company. Nominee directors often work in collaboration with a nominee shareholder and nominee secretary.
According to the law, two significant categories of directors are there 1) executive directors and 2) non-executive directors. A nominee director falls into the second type and is designated on behalf of an intended party (for start-ups, it is mostly the equity investor).
Do nominee directors hold shares in the company?
Usually, the investor appoints both a shareholder and an executive director to the board. And in most cases, a nominee director is a non-executive director and does not hold any shares in the company.
A company can be a nominee director
Certain countries allow a company to be designated as a nominee director in another company. While in other countries, only a person can be the nominee.
The responsibilities and powers of a nominee director
A nominee director is appointed to supervise, sitting-on the proceedings of the board, and to attend the board meetings as well. A nominee represents the investor or the third party, involved in the company with a dual yet conflicting position.
First of all, as the director of a company, the nominee is responsible for serving the company and taking actions that are the ideal interest of that company. On the other hand, since the nominee is designated for protecting the interests of the investor, it is in his duty to safeguard the interests of the investor.
Why should you think of company incorporation?
Do you have any clear idea of why you ought to register your company or business? You should consider incorporating your business to make its existence more real and most importantly legal. And, if you want to reach the global market, establish your brand value, and operate your business as a distinct and reliable entity, you should not ignore the importance of registering your company.
Give your business a unique identity
Vanity comes with a separate identity of your company or business. When you register your company, it starts to exist legally along with its unique name and address. According to law, no two companies run under the same name because it may confuse the public. Timcolehelp to incorporate companyin Singapore company.
Protecting yourself from personal liability
If you are not legally protected with limited liability, you may lose your personal property even your business if something goes wrong. When your company stands as a limited liability entity, it is responsible to pay the damages, not you.
Attracting more customers
You may not find the right suppliers, investors as well as customers, if you are not legally registered as a separate business entity. You won’t be able to provide receipts to your customers regarding the product or service you offer and no one is interested to pay for something without demanding a proper receipt.
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