Functions and Roles of a Nominee Director in Singapore
According to Singapore’s company Act, it’s a requirement that a company registered in Singapore should have at least one local director who is a resident of Singapore. A nominee director in Singapore is therefore a person who is obligated to act in accordance to the instructions, directions and wishes of another person. Any foreigner that’s considering incorporation of company in Singapore should therefore consider hiring a resident to act as a director of the company and the hired director is referred to as the nominee director.
The nominee director in Singapore represents the interests of the appointing person or group and has the same obligations and responsibilities as that of a regular resident director. The obligations may arise from an agreed contract, from trust or informal arrangement. As a representative of the company that has appointed him, a nominee director is the ideal person to order the company on almost anything. The company is also bound by such acts and committed to the outcome that may result from their actions.
Here are some of the functions and roles of a nominee director in Singapore;
Should act in good faith and in the best interest of the company
A nominee director is required to act in good faith and in the best interest of the company whenever they are making any decision. They are expected to prove undivided loyalty and unquestionable integrity as they handle company matters. Engaging a reputable firm such as Onestop Assurance Singapore for nominee director services in Singapore can be of great help as the firm ensures that matters to do with integrity and loyalty to the appointing authority and company is well taken into consideration. The person chosen should be free from demonstration of any third party or personal interests.
A nominee director should be ready to steer clear of any engagements that compromise the best interest of the company. This should be reflected in the tasks they are involved in such as divulging of company information to a competitor or external parties, diverting company opportunities to themselves or a third party, setting up in place a rival firm to compete with the company they are hired to work for as a nominee director in Singapore and in purchase or sale of company assets without proper authority or agreement of the directors.
Demonstrate professionalism, utmost care and diligence
The effective management of a company requires more from a nominee director than just being present. The person chosen for the task should be able to demonstrate the right set of character, skills and experience and all these should be executed in a very professional manner.
Avoid exploiting power and position
A nominee director in Singapore should only use their position, privileges and rights to achieve company end goals and not for harm or prejudice. From the roles shared, it’s clear that ultimate care should be taken when appointing a nominee director in Singapore and that’s why working with a reputable firm such as Onestop Assurance Singapore can be of great help.
Originally published by onestop-audit.com