Role Of Nominee Director

1. RoleOfNominee Director Thereisnoargumentoverthefactthatitisofprimeimportancetohaveatleastasingledirector inordertosetupacompany.However,moreoftenthannot,certaincompaniesmakeuseofa nomineedirectorinsteadwhoplaysanidenticalroleinapassivefashion.Ifyouareunawareof nomineecompaniesordirectorsandthebenefitsthatittheyentails,letus accentuateafewofthe prominent ones foryou. Tobeginwith,suchdirectorsaregoingtohelpagreatdealifyouwanttoensuretheprivacyof yourinvestors.Aspartofajurisdiction,itisessentialthepersonaldetailsofthedirectorappear onapublicregisterwhichhelpsagreatdealincombattingtaxevasion.Thisiswhereanominee directorstepsin.Sincehispersonaldetailsaregoingtobementionedintheregistry,itensures investor’s privacyand anenhanced asset protection. Youmaybefamiliarwiththefactthatcertainjurisdictionsrequirethedirectorofacompanyto be a local citizen of the country in which a particular offshore company is going to be established.Sinceabunchofinvestorsarealwayslookingforwardtotakethebenefitfromthe foreign countries company law, it may appear to be quite inconvenient for them. A simple solution to the aforementioned concern however, is the use of nominee companies. In other words,anomineedirectormeetsthestatutoryrequirementsforacompanyforentrepreneurswho would prefer to run theirbusiness from their resident country. It is indispensable to mention here that nominee companies do also happen to be logistically beneficial. Itisvitalforanoffshorecompanytohaveacorporatebankaccountwhichwillbe utilizedforcompanyincorporation.Asevident,thebankapplicationcan’tbedealtwithuntilor unless the director of the company meets with the bank on behalf of the company itself. Otherwise, the investors would have to do it by themselves that may happen to be a huge inconvenienceforsomeoftheinvestorsleadingtolesserandlesserofthembeinginterestedin the business. Itisofimperativetostatethattherearecertainrisksassociatedwithhiringsuchadirectoras well.Whiletheindividualisprimarilyrequiredtoworkinapassivefashionandmakeallofthe decisionsassociatedwiththebusinesswiththeconsentoftheinvestors,thereiscertainpower bestowedinhimaswell.Itiswithinthepowerofthedirectortomakesomeofthosestrategic http://AssetProtection365.com

2. decisionswhichmayspanovermanagementandoperationsofthecompanyitself.Whileacting onbehalfofthecompany,thenomineedirectoriscapableofmakingthesedecisionswithoutthe consent of theinvestors. Inthelightoftheinformationmentionedabove,itwouldbefairtoconcludethatwhilehiring suchadirectorisgoingtobeacommendableoptionwithnumerousbenefits,itisvitalthatyou performabackgroundcheckandlookforreferencesinordertohireareliableandtrustworthy professional forthe aforementionedpurpose. http://AssetProtection365.com