What are the responsibilities and legal duties of a nominee director? In order to ensure that our clients are fully aware of the benefits and drawbacks of a nominee directorship, our experts at Coddan Formations Agency provide a thorough explanation before starting the process - this advice is tailored to the specific needs and circumstances of your business incorporation needs.
It is extremely important to highlight exactly what a nominee director is responsible for, as well the obligations that remain with the beneficiary owner that is in effect in full control of the limited company. It is worth remembering from the outset that a nominee director can only be appointed to appear in official records that are kept by Companies House, and not to take over any of the day-to-day operations that may be carried out by a private company.
When a nominee directorship is put into practice, they will only be able to act as a signatory for a very limited set of specific activities. The most crucial of these is the signing of company annual returns, and annual accounts, but this will only take place once they have been compiled by the company's official accountants (these will then be forwarded to Companies House, keeping your signature and details away from the actual records).
In certain circumstances, a nominee director can also act as a secondary signatory on a company bank account, but this needs to be set up as a specific arrangement.
In practice, the most important duty for a nominee director is to ensure that the true name and identity of the beneficiary owner is kept away from official records and databases.