What is a nominee director?

What is a nominee director?

The nominee director is a person or group of persons that  manage a company’s affairs, but who don´t perform such duties at their discretion. Nominee Directors act as a result or directive from the beneficial owner with whom they are bound by Contractual Agreement.  The powers of the Nominee Director will have the reach that the beneficial owners wishes,  may have broader powers. The beneficial owner or beneficiary has the powers, at any time, to cancel or revoke the decisions taken by or under the authority of the Nominee Director.

Under normal circumstances, the company’s affairs are managed by a beneficiary appointed attorney under the provisions of a power of attorney granted by the Nominee Director.

What is a nominee shareholder?

A nominee shareholder is a person or persons that not necessarily owns the shares in a company, but holds them under the consent of the beneficiary for the benefit of the actual owner of the company. The relationship that arises between the nominee shareholder and the owner is grounded on a trust agreement , whereby  the beneficial owner has direct interest in the property put into trust and the income that derives from it .

The Beneficiary owner  may, at any time, change the nominee holder of shares.