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How can Singapore Citizen be nominee director and do nothing

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xxxsoulxxx
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How can Singapore Citizen be nominee director and do nothing

Postby xxxsoulxxx » Tue, 20 Nov 2012 2:37 pm

Anyone know if a Singapore Citizen can hold multiple nominee director without doing much and perhaps collect a little monthly allowance? Definitely the investor has to be safe and no laws violated in any way.
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sundaymorningstaple
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Postby sundaymorningstaple » Tue, 20 Nov 2012 3:27 pm

can be done, but ACRA is tightening up on that now. Check ACRA to see how much BS you can get away with before you end up in legal troubles. Seems one has already gotten blacklisted who work for one of the Incorporation Specialists in Singapore. Not sure which company though. You could also open yourself up to a world of legal problems not of your own doing as well, if not careful and the company does something dodgy here.

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Postby xxxsoulxxx » Tue, 20 Nov 2012 4:13 pm

So as a director I still need to be responsible to ensure nothing funny is going on right. So its possible and not illegal? Sounds like some audit work.
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Re: How can Singapore Citizen be nominee director and do not

Postby Strong Eagle » Tue, 20 Nov 2012 4:23 pm

xxxsoulxxx wrote:Anyone know if a Singapore Citizen can hold multiple nominee director without doing much and perhaps collect a little monthly allowance? Definitely the investor has to be safe and no laws violated in any way.


A "nominee" director is nothing more than a director as defined under the corporate statutes of Singapore. There is no legally defined "nominee" director. All this means is that you get a pre-signed letter of resignation from the director that you can date at anytime, should you not like the actions of your director.

That also means that as a director, you have fiduciary responsibilities for the company... like ensuring that required records are filed on time, that AGM and EGM minutes are kept, that lists of shareholders are maintained, and that the company is not doing anything illegal. If you fail in these tasks, you can be held criminally accountable, and at the very least, refused by the ACRA as a director.

You can hold multiple director positions. If you have too many, ACRA may wonder how it is you can meet your fiduciary responsibilities, and may stuff a microscope up your arse to see what you are up to.

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Postby ScoobyDoes » Wed, 21 Nov 2012 11:29 am

It's not like Singapore is the only country on the planet that does this.

As well as the pre-signed resignation letter what you can often get also is a Letter of Indemnity for the 'nominee' supposedly removing their legal risk but I'm not sure if that actually works in practise.
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Postby Strong Eagle » Wed, 21 Nov 2012 12:06 pm

ScoobyDoes wrote:As well as the pre-signed resignation letter what you can often get also is a Letter of Indemnity for the 'nominee' supposedly removing their legal risk but I'm not sure if that actually works in practise.


There is no way that this letter of indemnity can mean anything because directors' responsibilities are defined by the corporations act, and the act does not allow for exceptions. Can you say, "bullsh*t"?

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Postby ScoobyDoes » Wed, 21 Nov 2012 2:33 pm

Strong Eagle wrote:
ScoobyDoes wrote:As well as the pre-signed resignation letter what you can often get also is a Letter of Indemnity for the 'nominee' supposedly removing their legal risk but I'm not sure if that actually works in practise.


There is no way that this letter of indemnity can mean anything because directors' responsibilities are defined by the corporations act, and the act does not allow for exceptions. Can you say, "bullsh*t"?



I think in terms of cost what it does do is force the 'actual' director to cover any penalty or cost of a 'nominee' director as a side agreement to the act.
'When Lewis Hamilton wins a race he has to thank Vodafone whereas in my day I used to chase the crumpet. I know which era I'd rather race in.'



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Postby harshthackar » Mon, 26 Nov 2012 8:40 pm

Is there a way to incorporate in Singapore without a Resident director ?

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Postby sundaymorningstaple » Mon, 26 Nov 2012 10:27 pm

Nope.


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