What is a nominee director?
Every company in Singapore requires to appoint a nominee director to knob diverse work actions and making conclusions for the favour of the company. It is mandatory in Singapore for corporations to appoint at least one nominee director who would be the resident of the Singapore or an employment pass holder. This is a rule of the country’s company act. If you are an outsider and desires to set up your business in Singapore but does not have a resident person who can work as the nominee resident director, then you can hire a separate to work as a nominee director. Director and Singapore company secretary are the two main designations in companies in Singapore.
Are there nominee director risks while hiring them as per the country’s company act?
In simple and easy words, you can say “No”, there is no risk in hiring nominee director for your company as long as you have involved a trustworthy corporate service provider. As per the part, IXA of country’s company act overtly sanctions the notion of an ND, so you would not be breaching any laws by hiring an ND. In fact, you would be gratifying the obligatory “local director” necessities by doing this.
Most often question and doubt like whether or not the director of a company takes decisions on the behalf of the company makes people curious. So, if you are one of those curious people, then the answer is “yes” if you have sign-up with bad corporate service providers otherwise “No” if you have opted a reputable corporate service provider. An ND from a well-developed and reputable corporate service manager will have no financial, operational and managerial role. You would hire your real directors who are not required to be a resident of Singapore and can stay in any other country. They would be accountable for managing the company every day.
What does nominee director risks involved in a company?
A ND or nominee director assumes the momentous risk. If the business or its directors break any law, the nominee director would also on the knob with the authorities of Singapore. While the nominee director’s controls are harshly shortened, their obligation would not- solemn breaks of the acts by the business could result in the action of the nominee director.
Of course, authorities of Singapore in such cases would also go after Singapore company secretary, director and owner and impeaches them to the complete degree of the act. Laws and rules in Singapore are simple, easy and much straightforward but the authority takes a grave interpretation on their obedience to defend itself from wicked troupes.