Nominee Director. What is this - fraud or an urgent need for business

Today almost everyone knows about the existence of nominal figures in business, but very few people really imagine why they are needed and is it a fraud? We will understand who and for what position is appointed, the nominal director - what is this, how legitimate is it, and whether it is necessary to contact this type of activity?

Nominee service

When opening employment offers, you probably noticed that there are firms that provide a nominal service. What does it mean? Such companies contain a whole staff of individuals and legal entities, who are appointed to certain positions, while they will have limited access to business information, a limited range of responsibilities and opportunities. For example, the responsibility of a nominal director allows him to sign internal papers and contracts.

What is it for

Nominee shareholder or nominee director - what is it and who needs it? If you do not take into account illegal and illegal business, many companies periodically need a nominal director.

The first example. There are two firms with one director. Between them there is a need to conduct some kind of formal documentary turnover. To sign a contract between firms from one person is impossible. Here, the nominal CEO of one of the companies comes to the rescue, on whose behalf the papers will be signed.

The second example. A firm for prestige needs an account in an English bank abroad. The bank refuses to accept the resident of another country as the account manager. In this case, an outside English clerk is hired who can open an account in his name and manage it with disabilities.

The third example. When the founder of a company does not want to advertise its activities, and considers it a trade secret, defending itself against competitors.

Nominee Director

Nominal director - what is it and what is needed, of the examples listed is understandable. But there are other nominal positions. These are nominee shareholders and secretaries. Who is who?

The nominee director executes the orders of the general director or founder and manages the business in the direction specified in the contract. Most often, an attorney works by proxy. This person has the right to sign and a limited range of powers - he enters into contracts that he is told, opens bank accounts, but does not know, for example, where the office is located or in which bank the current account is located.

Nominee Shareholder

Nominee shareholder is not a rare figure in offshore business. Often in his name, a portion of the company's shares is drawn up so that the real owner of the company does not appear in the state register of the owners of the companies. Of course, it's rather risky to transfer even a part of the shares to an outsider, so a written agreement is concluded between the present shareholder and the nominal one, according to which all received dividends are transferred to the true owner.

Nominee secretary

This position, like the treasurer, the chairman and some other officials, is rarely used, even in cases where a certain position is required in some countries, but it does not bring any benefit and necessity for business. An example of such a country is Panama. There must be all these three posts.

What does an attorney get?

The work of a nominal director is paid for the time that a person spends in this position, as well as for the risks that he incurs when he finds himself at such a high stage of the career ladder. After all, there is always a possibility that the head of business will perform some illegal operation, thereby substituting the one who for personal responsibility is personally responsible for this.

Of course, this risk is very high, and therefore the work is paid quite high.

Most often, such nominal services are provided by law firms, or by individual lawyers and lawyers who are able to assess the risk and quite thoroughly know the specifics of the work of the client company. One person is often the nominal director of 5 to 20 small companies.

Risks

The important thing is the risks that the nominal director has at work. Reviews say that this post is fraudulent. Let's figure it out.

In the legislation of the Russian Federation this concept is not present, and rendering of similar services is not considered illegal. The only thing that is forbidden is the organization of the firm with the involvement of a frontman, but it is very difficult to prove legislatively that the hired director was a front man. Therefore, the risks of a nominal director are extremely small.

Usually the appointment takes place at the founders' council, the employment is documented, and any legal delay arising during the course of the work can appear, as in the ordinary work of the general director or the founder.

Of course, when setting up a nominal director, what is this, a person should understand risks first. Especially, as for criminal activity, for which also often a head figure is put at the head of the company. In general, when deciding on such an adventure, a specialist should clearly understand the specifics of what the firm does, for what purposes it is hired, and what consequences for it may entail problems and risks that may arise in the course of managing the firm. Only in this case it is necessary to agree to this kind of work. Plus, a specialist should have a legal education so that he can penetrate into the agreement that is concluded with him.