The 'myth' that is often attached to the appointment of a nominee director: we have spent many years developing the reputation of Coddan Formations Agency in the business services marketplace, and all of this has been based upon operating in a manner that is legal, ethical and responsible.
Our companies registration experts have a detailed knowledge of the benefits that accompany the appointment of a nominee director, but there are still many clients that are sceptical of this arrangement - there seems to be a stigma that is attached to this type of set-up.
A common misconception (or myth) is that a nominee director is used as a cover for illegal purposes, such as tax evasion. In reality, the legal formalities that are involved make it impossible for this kind of activity to be hidden, and the beneficiary owner will always be 100% responsible for any misdeeds that occur. More importantly, they will also be entirely identifiable at all times.
When a nominee director is appointed, we provide a comprehensive set of documents and letters that outline the true set-up and nature of a business. Although the official Companies House database will only show the name of the limited company and the details of the nominee director, we keep full records about the beneficiary owner, and these can be presented in the event of any kind of investigation or inspection for the criminal activities or fraud.
Naturally, as a client you will also have copies of this information, as well as a general power of attorney and an indemnity letter to prove that you are in effect in control of the private company. If you have heard elsewhere that a nominee directorship can be used to hide certain illegal activities, it is highly likely that this documentation has not been drawn up - either through complicity or just general naivety about the whole process.