Local Resident Director – “Risks” ? (Pte Ltd)

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martincymru
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Local Resident Director – “Risks” ? (Pte Ltd)

Post by martincymru » Sat, 17 Aug 2019 3:00 pm

I am a foreigner and intend to incorporate a local company (I need to engage a filing agent). Sole shareholder is me; $1 capital. It's a contract advice type of business, no goods or trading.

My friend (Sg citizen) has agreed to act as the local resident director. He will resign after I obtain my EP. He has asked me:

Q1:
“What are the “risks / liabilities” to me from point of incorporation until your EP is awarded and you become sole director (I resign at that point).
[Timeline say 3 weeks]”.

Q2:
"What are the “risks / liabilities” (presumably lesser) to me after I resign as director"?

( “risks / liabilities” are defined broadly and not solely monetary).

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Re: Local Resident Director – “Risks” ? (Pte Ltd)

Post by PNGMK » Sat, 17 Aug 2019 9:41 pm

Q1. not much in that time frame really. What risks there are exist around fiduciary duty. If he is seeing bank statements and control access he is 100% ok.
Q2. none unless something happened while he was director that he was not aware of.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: Local Resident Director – “Risks” ? (Pte Ltd)

Post by Strong Eagle » Sat, 17 Aug 2019 9:51 pm

The director of a company is 100 percent criminally and civilly liable for all acts of the company for which she is a director.

If you are laundering money without the knowledge of your Singapore citizen friend, he is liable.

If you are running young girls out of Bangkok to the estate of Jeffrey Epstein without the knowledge of your Singapore friend, she is liable.

If you violate any corporate financial or other reporting act, your director is liable. If you fail to pay creditors, your director is liable. If you violate provisions of the employment act, or illegally hire, or fail to get permits or pay import taxes, your director is liable.

Even if you resign as director, you are still liable for the acts of the company committed while you were a director.

This is why most people will not consent to be a director for a business in which they are not involved. I'll bet your friend doesn't know all this.

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Re: Local Resident Director – “Risks” ? (Pte Ltd)

Post by Strong Eagle » Sat, 17 Aug 2019 10:28 pm

As a side note, what makes you think you're going to get an EP in three weeks? An EP requires a minimum salary level. If you can't show where the money is coming from, no EP.

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