Currently it is quite common practice for offshore companies in different countries to appoint nominee directors when registering a company. Such corporate tool is also sometimes used for companies registered in Dubai, the UAE.
In order to ensure the best protection of beneficial owners of the company in Dubai against negligence or fraudulent actions on the part of nominees, it is required to sign special declaration of trust. This document confirms that the Dubai company is owned by particular beneficial owners. In case of excess of powers, nominees may be held liable on the basis of such declaration.
Moreover, upon appointment the nominee of the company in the UAE shall sign in advance relevant resolution on termination of legal relations. This resolution allows beneficial owner of the company to transfer the duties of nominee to any other person at any time in his sole discretion.
Beneficiary of the company may at any time approve a resolution on dismissal of the nominee director and appoint himself or any other person as a new director. Alteration of director and required documents for enforcement of such resolution depend on legal status of the company and the FTZ, in which such company is registered.
