What are the responsibilities and duties of a nominee shareholder? Any incorporated organisation in the UK requires an appointed director and an appointed shareholder. However, for limited company owners who want their involvement in the organisation to remain confidential, it is possible to appoint nominee shareholders.
This may be done because the real owner may already have business partnerships with potential competitors, or because a person's involvement may harm the commercial prospects of the new private company.
At Coddan, we can appoint nominee shareholders if you want to remain anonymous in your new company limited by shares. Your nominee shareholder's name will appear on the records held at Companies House, meaning your name is in no way associated with the organisation you own.
The nominee shareholder generally has no other responsibilities other than to act as an official director. However, in the eyes of the law, the nominee director is accountable for the actions and any illegal activity committed by the organisation - unless arrangements have been made to the contrary.
Once the incorporation paperwork has been registered with Companies House, the nominee director we have appointed will formally resign. As the company owner, we will then ask you to sign a letter of indemnity to take responsibility for the decisions and actions taken within your new business. Meanwhile, the company registration agents at Coddan Formations Agency will draw up a formal power of attorney, which will allow you to run the company in any way you see fit.
In effect, the nominee shareholder we appoint to your private company is merely there to be the public name associated with it. Companies House will hold no records of your association with the organisation, allowing you to make decisions with anonymity. Using a nominee shareholders agreement, we would hold the shares of your new limited company within a trust. You will also be issued with a share transfer form, which allows you to transfer the shares whenever you want to.