What does it mean to have a nominee shareholder and/or director in place within my company? And, if I choose to have one, who holds the power to operate the business?
When you incorporate a company through SFM Corporate Services, whether you’re opting for an offshore company or an onshore incorporation, you are given the choice of selecting nominee director and/or shareholder services. These services ensure that, during the incorporation process, further privacy and confidentiality measures are taken for those clients wishing to remain more anonymous.
Having nominees in place within the company structure means that SFM will appoint a director and/or shareholder in name and this nominee’s details will appear in the corporate documents of the company, in any business contracts that may be drawn up, and — for those jurisdictions that apply — in the corporate registry. Additional to these advantages, in selecting nominee director services, the client places the management and control issue of the company firmly outside the high tax jurisdiction that he/she may be based in, while in selecting nominee shareholder services, the client is able to shield himself/herself from being publically associated with the ownership of the company.
One may wonder, though, if this means that the nominee has the power to operate the company in any way, shape, or form. Rest assured that even if the client opts for nominee services, the control of the business remains entirely with the ultimate beneficial owner of the company and/or the person who holds the power of attorney to act on behalf of the company. Upon appointment of a nominee director and/or nominee shareholder, a Nominee Services Agreement is drawn up to be signed by the client and then counter-signed by the nominee. This declaration of trust guarantees to the client that the nominee can only act or sign documents upon the client’s request and with the client’s prior approval. Moreover, should a nominee director be put in place within the company structure, a power of attorney is drawn up to give the ultimate beneficial owner (or a person of the ultimate beneficial owner’s choosing) the authority to run the business and/or sign contracts on behalf of the company.
What’s more, the nominees provided by SFM work with the highest level of professionalism, integrity, and discretion, thus ensuring that clients who select these optional services can remain confident in their company formation established through our corporate services.