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Nominee Director.

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Oriental
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Nominee Director.

Postby Oriental » Thu, 01 Sep 2005 5:02 am

As it is required to have at least one resident director in a private limited company in Singapore I am curious to know if anyone has had any experience in using a nominee director. Please share your experience.
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Strong Eagle
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Postby Strong Eagle » Thu, 01 Sep 2005 7:41 am

It is a fairly common practice and is how my company began until I arrived here. In our case, our CPA had a third party in her office who was our director for a nominal fee.

Here is the deal, though. Directors have real powers and responsibilities under the companies act. Thus, your nominee director could be the target of shareholder/customer lawsuits for example. Or, your director _could_ be a royal pain the arse if he/she doesn't really fulfill your intended requirement, which is to get a director that stays out of the way. After all, every action of the company, like opening a bank account requires the signatures of two directors.

We felt that our CPA had the best interests of our company at heart and we trusted her judgment (which was not misplaced). But, there are ramifications of which I was unaware at the time.


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