Are Nominee Directors Still a Good Idea?
Monday, July 28th, 2008That’s a question I’m often asked by clients in relation to offshore company formations, particularly in relation to Panamanian companies where nominee directors are standard. There’s a good article here.
Below is an extract:
What is the difference between Nominee Directors and Professional Directors
A Professional director is a term normally used to refer to nominee directors who have been specifically hired to take on an active role in the management of the company. Unlike nominee directors who simply rent their names and sign documents prepared by lawyers, a professional director is typically either a professionally qualified person such as a lawyer, or a well-known businessman with many years experience. (Retired businesspeople frequently take on such positions)
The underlying purpose is broadly similar - to disguise the underlying ownership and control. But the professional management are expected to demonstrate active participation in the day-to-day affairs of the company. They may write letters, make public appearances, and hold official meetings where company business is decided upon.