What are the benefits of having a nominee director or shareholder?

0

Hey, I’m curious about nominee directors and shareholders. Quite a few companies seem to have them - but why? Not sure if it’s for me or not, but I wanted to know whether there were any benefits at all from using them.

Answers

0

There is no legal requirement to have a nominee director or shareholder - the only reason some people choose to have nominees is to protect their privacy by keeping their personal details off of the public register of companies. This prevents third parties from identifying the true director or beneficial shareholder in a company.

Some corporate directors and shareholders - i.e. companies that are directors or shareholders in other limited companies - prefer not to disclose their involvement in other companies. This is especially common with holding companies which are set up simply to own shares in other businesses. Some individuals may also wish to keep their details off public record due to reasons of personal security, or perhaps to protect the identity of a minor who has been gifted shares in a family business.

If you have no issue with your details being registered with Companies House in association with holding a directorship or owning company shares, there is no need for you to appoint a nominee.

a year ago
 

Your answer