What are the main differences between a nominee director and a shadow director? When going through the process of registering a limited company, it may sometimes be advantageous to appoint the services of a nominee director. Coddan Formations Agency can advise you about how this type of arrangement could benefit your business, but at the same time, it is vital to be able to distinguish between the positions of "nominee director" and the "shadow director".
There are a number of legal formalities that are involved when setting up this system of organisation, and it is extremely important to be able to show that these two separate entities are clearly defined - this is a requirement to ensure the legality of having a nominee director.
What are the main differences between a nominee director and a shadow director? A nominee director is defined in law as the individual that appears on official business records at Companies House, and their name and address shows up when any organisation wishes to conduct a search of this database. However, this named party will not be in true control of the company - it is in fact the shadow director that retains full control of the business.
Although they are not named in any official, public-facing documentation, their details will in fact be specified in another type of document that is necessary for the passing of full control. This can be a regular drafted power of attorney document or something of a similar nature, and the shadow director is usually the individual that has decided to appoint the services of a nominee director in the first instance.