Nominee directors or so-called nominees of the companies in the UAE constitute persons who are appointed to the position of directors when registering offshore companies. This arrangement ensures confidentiality with regard to beneficial owners of business. Nominee directors do not participate in company’s business. Normally, they shall ensure confidentiality aspect with regard to beneficial owners of assets and capital.
Nominee directors may perform actions in Dubai and other Emirates only subject to the instructions of the ultimate beneficiary, in other words, business owner. Nominees of the company are appointed by resolution of beneficial owners. Upon appointment the nominee shall sign relevant documents confirming his liability within his assignment powers.
In cases where the nominee of the United Arab Emirates company lives outside of the company jurisdiction, he shall issue general power of attorney to shareholder or owner of the company. Nominee’s actions shall not affect main business of the company in the UAE. Nominee directors are not authorized to manage company bank accounts, and only beneficial owners or their authorized representatives shall have access to the companies accounts in the UAE.
All information concerning offshore or onshore company business in Dubai, financial status of the company, company bank accounts in the United Arab Emirates is under the supervision of beneficiaries of the company. Such approach totally excludes the possibility of abuse of powers by nominees. All powers relating to operational management of the company in the UAE is vested in beneficial owners of the offshore company.
Finally, we can say that nominees do not have information regarding available bank accounts, and are not entitled to manage bank accounts in the UAE or abroad.
However, it is worth paying special attention to specific aspects of the laws of the UAE relating to the nominees. The reasons for appointment of nominee directors are quite clear and such appointment is subject to complete confidence. But when appointing nominee shareholders, it is required to take necessary precautions, since banks in the UAE may refuse to treat nominee shareholder as nominees. For this reason, the appointment of nominee shareholders of the companies in the UAE, as a rule, is not recommended.
