The article explains:
Job Description: "nominal director"
2 types of nominee director
Risks of a Nominee Director
5 Reasons to Hire a Nominee Director
3 options for finding a nominee director
Nominee director not by his own will
3 Steps to Find Out if You Are a Nominee Director
2 options for control over a nominee director
Risks of a contract with a nominee director with an empty date
Liability of the Nominee Director
Judicial practice
Nominee Director's Evasion of Responsibility
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A nominal director is a front taiwan email list person that companies use to keep the company "working" and listed on the balance sheet of the State Register. And what she does there, only God knows. By the way, the fictitious director is also sometimes not aware of all the affairs. He is responsible for the signature put on documents that he most likely does not even read.
The most interesting thing is that such a position is not prohibited by law, but it is not encouraged either. It is also necessary to prove that the director works fictitiously. And judicial practice in this matter is ambiguous. In any case, tax authorities do not like nominal directors - this is a fact. In this regard, there are certain risks for both the founders of the company and the fictitious CEO.
Job Description: "nominal director"
There is no ban on nominal positions at the legislative level. Often there are companies that invite fictitious managers, shareholders and even secretaries. And a number of companies have a special staff of people who, if necessary, can be called upon at any time to perform such functions.
So, what rights and obligations does a nominal employee have? Of course, the exhaustive list of his powers is clearly agreed upon with the employer. The nominal has the right to sign the internal documents of the company and is responsible for the actions taken.
As a rule, access to information about the activities of the company in which the person is a nominal director is limited. And therefore, in order to navigate the area in which the company operates, he must have sufficient knowledge.
The scope of authority of the nominal director is set out in the power of attorney on the basis of which he acts. All important issues concerning the company's activities and the adoption of strategic decisions must be agreed upon with the person actually managing the company.
It often happens that the nominal CEO is brought in solely to sign documents. In this case, he may not even know the location of the company's office.
As we have already noted, a shareholder can also be nominal. That is, a certain number of shares of the company are registered to a certain person. This is done so that the name of the true owner does not appear in the state register of legal entities. The parties regulate their relations by an agreement, which clearly sets out all the rights and obligations of the nominal founder. Only the true owner of the shares has the right to receive dividends.
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The remaining staff positions are rarely filled by nominal employees. This only happens when the company is required by law to have this position, but in fact there is no such need.