in Singapore: Hiring Guide
What is a Nominee Director?
Does Your Company Need a Nominee Director?
Why Does Singapore Require a Local Director?
The Singapore government needs someone it can hold responsible in case a company breaks any laws. This helps them prevent foreign owners from absconding from the company and escaping liability if any legal problems arise with the country.
A local director in Singapore undertakes necessary due diligence to make sure that the company complies with all laws. Singapore's Companies Act and its common law impose the same obligations and responsibilities on a nominee director as those imposed on a regular director.
Director vs Nominee Director Responsibilities
The company’s statutory books are maintained correctly
Regulatory filings are done in a timely manner
Accounting records and annual accounts are maintained accurately
Shareholder and director meetings are conducted as per the law
Their fiduciary duty toward the company is honored at all times in all their official actions
Weighing the Risk of Hiring a Nominee Director
Compliant and Easy Nominee Director Services
What Risk Does a Nominee Director Take On?
A nominee director undertakes significant risk. If a company breaks a law, the nominee director is accountable to the Singapore authorities. While the nominee director’s powers may be severely curtailed, his or her liability is not. Serious breaches of the law by the company can even result in the prosecution of the nominee director in Singapore.
With that in mind, CorporateServices.com conducts a Know Your Client (KYC) due diligence as part of agreeing to act as nominee director for a company. Additionally, the nominee director must monitor the activities of the company in sufficient detail to ensure the company is not violating any laws.
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Frequently Asked Questions