What Is The Purpose Of A Nominee Director In International Business?
Nominee or professional directors are intermediaries that are legally allowed to represent a business in the transactions and operations that the actual owner does not want to conduct personally.
This kind of advisor or representative can be legally allowed through a Power of Attorney to conduct the activities of the business.
These include signing documents or establishing relations with authorities of the government as long as the owner permits them to do so.
The owners of any business who want to remain away from the public's eye or who do not want to enroll directly with the bureau of the government can opt to find a Nominee Director that will help them with their investments.
Nominee directors can also represent them and their capital in various activities related to their business, such as opening bank accounts, signing contracts, and other tasks of representation.
Nominee Directors can help investors with their business responsibilities while maintaining the anonymity of the owners.
Can A Nominee Director Steal Your Investments?
Some people might think that a Nominee Director could pose a risk to their investments. This because the Power of Attorney given by owners of the business to nominee directors allows them to make decisions without consulting with the investors first.
However, this is not so because Nominee Directors can only do the task and activities that the Power of Attorney allows them to do, and beforehand, owners request specifically to their representatives what they need them to do.
To summarize, Nominee Directors cannot become active and take decisions on behalf of the business by themselves, as they need the written authorization of the actual orders to sign documents or do any kind of activity related to their capital.
Furthermore, Nominee Directors do not have permanent access to the information of the business that they are assisting.
Despite being able to open bank accounts or conducting relations with government authorities, these representatives do not have or need to know anything that the owners don’t want them to know.
Usually, the Power of Attorney that establishes the relation between Nominee Directors and investors can last up to one years’ time.
If both parties agree to keep the representative services for more time, they can extend this relation once this first contract expires.
These might be attractive to businessmen, as they can keep control of this relationship and see if it is being helpful to their needs.
Keeping their anonymity while making a profit offshore is possible for investors.
Nominee Directors are the ideal solution for people that want to keep their privacy in and out of these territories regarding their investments and will let them enjoy all the benefits that they look for when they think of investing offshore.
Seek Consultation With A Corporate Expert
However, you should be aware that the world of business continues to move towards a higher level of transparency and legislation is constantly changing, because of this we recommend that you seek a consultation with a corporate expert.
Be aware that this article is merely for informational purposes and does not constitute legal advice. For detailed and updated information on the confidentiality conditions of each jurisdiction, please contact our experts.
