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Role of Nominee Director

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zoeY888
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Re: Role of Nominee Director

Post by zoeY888 » Tue, 15 Dec 2020 5:35 pm

Technically, a Nominee Director does not play a role in running a company. The role of the nominee director is to simply fulfill Singapore’s regulatory requirements to form a company. According to Singapore’s Companies Act, every company that is incorporated in Singapore must have one local resident director. A foreigner can hire a nominee director with a fee when he/she wants to incorporate a company in Singapore but knows no local who can act as a local resident director.

The hired Nominee Director must be a Singaporean/ a PR. :)

(Ref Link: https://www.paulhypepage.com/guide-faq/ ... -director/ )

Myasis Dragon
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Re: Role of Nominee Director

Post by Myasis Dragon » Wed, 16 Dec 2020 4:07 am

zoeY888 wrote:
Tue, 15 Dec 2020 5:35 pm
Technically, a Nominee Director does not play a role in running a company.
This information is absolutely incorrect. A nominee director is simply a person who must identify to the board of having the special interests of another person, company, or group of shareholders. A nominee director is required to thus identify because she/he may be voting in the interests of the represented individual and not the company as a whole.

Otherwise... EVERY director of a company has exactly the same duties, responsibilities, and criminal and civil liabilities under the Singapore Companies Act. You cannot write a memorandum of incorporation or pass a shareholder resolution or write and employment contract that would in any way reduce or deny the powers and duties of any director of the company as defined in the Companies Act.

The people who rent directors like to have you believe that their director is powerless, but in fact, that is not true. The director you hire has every power of a director. And, that director is also responsible for every act that you commit in the name of the company. This is why any firm that rents you a director will also want to be your auditor, your bookkeeper, and will want access to your bank records, including online transactions, your employment passes, and your contracts. They do not want to be burned by discovering that you setup your company for the purposes of money laundering.

While it is true that most of these firms have no interest in running your company, rest assured that they have the absolute right and power to make virtually any and all decisions for your company, should they decide to.

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sundaymorningstaple
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Re: Role of Nominee Director

Post by sundaymorningstaple » Wed, 16 Dec 2020 6:11 pm

zoeY888 wrote:
Tue, 15 Dec 2020 5:35 pm
Technically, a Nominee Director does not play a role in running a company. The role of the nominee director is to simply fulfill Singapore’s regulatory requirements to form a company. According to Singapore’s Companies Act, every company that is incorporated in Singapore must have one local resident director. A foreigner can hire a nominee director with a fee when he/she wants to incorporate a company in Singapore but knows no local who can act as a local resident director.

The hired Nominee Director must be a Singaporean/ a PR. :)

(Ref Link: https://www.paulhypepage.com/guide-faq/ ... -director/ )
Technically you are incorrect. Hopefully you don't work for the linked company as your capability is in question. If you actually read the link you provided, at the bottom of the page you will find the following.......
Role of a Nominee Director in a Singapore Company
In Singapore, a nominee director has the same obligations and responsibilities as those imposed on a regular director by the Companies Act and all abiding law in Singapore. However, a nominee director may not be named as the legal owner of a business.
"

zoeY888
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Re: Role of Nominee Director

Post by zoeY888 » Thu, 17 Dec 2020 5:59 pm

Myasis Dragon wrote:
Wed, 16 Dec 2020 4:07 am
zoeY888 wrote:
Tue, 15 Dec 2020 5:35 pm
Technically, a Nominee Director does not play a role in running a company.
This information is absolutely incorrect. A nominee director is simply a person who must identify to the board of having the special interests of another person, company, or group of shareholders. A nominee director is required to thus identify because she/he may be voting in the interests of the represented individual and not the company as a whole.

Otherwise... EVERY director of a company has exactly the same duties, responsibilities, and criminal and civil liabilities under the Singapore Companies Act. You cannot write a memorandum of incorporation or pass a shareholder resolution or write and employment contract that would in any way reduce or deny the powers and duties of any director of the company as defined in the Companies Act.

The people who rent directors like to have you believe that their director is powerless, but in fact, that is not true. The director you hire has every power of a director. And, that director is also responsible for every act that you commit in the name of the company. This is why any firm that rents you a director will also want to be your auditor, your bookkeeper, and will want access to your bank records, including online transactions, your employment passes, and your contracts. They do not want to be burned by discovering that you setup your company for the purposes of money laundering.

While it is true that most of these firms have no interest in running your company, rest assured that they have the absolute right and power to make virtually any and all decisions for your company, should they decide to.
That's really informative! Similar to your thought, I believe that service firms do not have the intention to interfere with my business operations. I do believe that they will be of some help in my company set up process!

zoeY888
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Re: Role of Nominee Director

Post by zoeY888 » Thu, 17 Dec 2020 6:00 pm

sundaymorningstaple wrote:
Wed, 16 Dec 2020 6:11 pm
zoeY888 wrote:
Tue, 15 Dec 2020 5:35 pm
Technically, a Nominee Director does not play a role in running a company. The role of the nominee director is to simply fulfill Singapore’s regulatory requirements to form a company. According to Singapore’s Companies Act, every company that is incorporated in Singapore must have one local resident director. A foreigner can hire a nominee director with a fee when he/she wants to incorporate a company in Singapore but knows no local who can act as a local resident director.

The hired Nominee Director must be a Singaporean/ a PR. :)

(Ref Link: https://www.paulhypepage.com/guide-faq/ ... -director/ )
Technically you are incorrect. Hopefully you don't work for the linked company as your capability is in question. If you actually read the link you provided, at the bottom of the page you will find the following.......
Role of a Nominee Director in a Singapore Company
In Singapore, a nominee director has the same obligations and responsibilities as those imposed on a regular director by the Companies Act and all abiding law in Singapore. However, a nominee director may not be named as the legal owner of a business.
"
Sorry, I started my own business and just wrote what I learnt from calling and reading online as well.

Looks like I was confused with that part of the article. Thanks for pointing out

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PNGMK
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Re: Role of Nominee Director

Post by PNGMK » Thu, 17 Dec 2020 8:15 pm

Good luck Zoey.
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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