Nominee Director Services – How It Works
A nominee director of a company is a person in a leadership role who provides formal management of the entrusted organization. This may be necessary for several reasons:
- To maintain anonymity (the reasons for maintaining it are usually personal to each owner and often remain undisclosed; moreover, their "disclosure" is essentially unnecessary for anyone);
- To "hide" information about the true manager of the company (by the way, the director, owner, and nominee director can be three different people);
- The need (for some reason) to appear in the company’s founding documents.
The synonym for "nominality" is "formality." This implies that your nominee director will only perform formal management of the organization, essentially just appearing in its documentation, but not participating in any managerial or organizational decisions of the company.
In fact, the nominee director acts as your assistant, aide, and advisor. All decisions are made by the actual owners of the company, who provide written instructions to the nominee director for performing certain formal actions.
However, the formality of management and the lack of authority, of course, do not exclude the nominee director from carrying out a number of specific duties. This may include signing documents, contracts, withdrawing funds from the corporate bank account, etc.
Nonetheless, the responsibility lying on them is minimal. The primary responsibility will rest with the company itself. The individuals bearing all the responsibility will be the actual manager of the enterprise or its true owner.
The right of signature for the nominee director of the company lies within the scope of authority and tasks delegated to them by the company owners.
What Services Can Our Company Provide You?
When discussing the nominee director service, it is worth noting that the entire range of necessary services is provided by our employees. We do not hire outsourced personnel; there is no need for that.
At the same time, let’s emphasize again that all powers are exercised by the actual leaders or owners of the company; our employees do not make any business decisions. Nominee directors only perform functions delegated to them by the actual owners of the company.
To select a nominee director for your company, we:
- Conduct comprehensive consultations to identify the areas of work and needs of the firm;
- Choose a nominee director for your company;
- Make sure to sign a contract with you, detailing all functions and responsibilities of our employee in the position of nominee director of the company.
How to Assess the Activities of a Company's Nominee Director
Since nominee directors essentially perform the functions of your assistants, aides, advisors, and consultants on various operational matters in the U.S., their responsibility is akin to that of ordinary employees of the company carrying out their functions and the assignments of management and owners.
For example, your nominee director can help lease your company's office, recommend lawyers, certified accountants, brokers, and help find employees for the company. Naturally, when hiring company employees, the decision to hire is solely yours. Thus, the nominee director will handle these and many other issues for you.
If the nominee director manages the account, all payments are made only with your written authorization. Not a cent of the company’s money goes without your written permission.
Payment for nominee directors is made on an hourly basis. According to the contract between our companies, you will receive a monthly invoice detailing the work of the nominee director for that month, described by hours. The invoice must be paid within 15 days.
Our directors are often invited to work as managers or actual directors in companies where they were nominee directors. In this case, a direct contract is signed between your company and the director.
If, for some reason, you are not satisfied with your nominee director, we can replace them at your request within 10 working days. Your old director will smoothly hand over all affairs to your new director.
