Normally companies, to ensure confidentiality of information affecting end beneficiary, apply nominee service. In most cases, nominee director of the company is not entitled to manage and control the company. Nominee director may not dispose assets of the company, including financial assets.
Nominee director shall incur liability defined in special document, that may include trust agreement, which stipulates powers and authority of the nominee.
Normal business practices and many years of international practice have developed protection against fraudulent or unlawful actions from the side of nominee director.
In turn, a director, whether nominal or real, incurs some certain liability for company activities.
First, the director is accountable to shareholders of the company, since director shall act solely in the interests of the company. If the director deliberately and demonstrably acts against interests of the company, he may be held liable for such actions.
Furthermore, in case the director signs cheques on behalf of the company, and the company fails to cover them, he may be personally liable for performance of such obligations.
In case the company is engaged in production of goods director is also liable for complying with all safety requirements.
