The nominee director of a company has no responsibilities or authority. It is not entitled to be involved in moral or financial obligations and to enter in any business contract. Basically, a nominee director gives the power of attorney to carry on some day to day works of the company but the real decisions are actually made by the directors in the board meeting as they will make the regulation assessment of the nominee director.
A nominee director can be from an existing company but his responsibilities do not correspond to the interests of the company he belongs. Many nominee directors are former business owners, retired personnel or corporate heads. These people are usually respected by all and are highly experienced. Although his decisions may not bind in the operation or working of the company, in most cases they do make the most important decisions that can help the company in the long run. Therefore it is vital for any company to have the most upright, authentic and independent nominee directors.
Today, there are many companies that offer the services of a nominee director to cater to the growing demand of companies and businesses. There are many trusted names and experienced companies in providing such service for businesses.
There are some regulations that must be kept in mind in relation to the responsibilities and role of a nominee director in a company. For instance, a nominee director does not have the authority to sing any official forms or validate that any information from the company to any agency or department of the government is true and correct.
The nominee director should be the one to face the media and public glare on a regular basis and especially during emergencies. He is mainly responsible for the company before the authorities and law therefore it is very important for a nominee director to be knowledgeable about the different laws of your business and your state. The nominee director is also task to pay certain taxes on behalf of the owner. Corporate and Vat taxes have to be paid on time.
There has been an increasing demand for nominee directors who have the needed knowledge of the international tax planning principles as well as the national laws. This is true especially in UK as more foreign and offshore registered companies have opened up in the country and the need for a nominee director is significantly increased for some important reasons.
Double tax charges are imposed on foreign owned companies as against those that are domestically registered. The nominee director of a company has an important role to play in trying to reduce these taxes in order for the business to save money.
Hence the main objective or goal of a nominee director is to protect the real directors against heavy and expensive taxes, scrutiny of the media and public and in preventing businesses from being kidnapped or attacked. The important roles of a nominee director make them highly sought after by businesses today.