How safe is nominee director service?

[dor]

Is it safe to use nominee director and shareholder?


Can director take over my offshore bank account then?

 

[hugger]

Is it safe to use nominee director and shareholder?
Can director take over my offshore bank account then?

Using a Nominee Director and/or Nominee Shareholder is very dangerous.


The nominee shareholder /nominee director of a company LEGALLY own and control the company under ALL Company law in EVERY country.


If you have a Nominee Director / Shareholder of your company then the banks will INSIST on him being a signatory to the account.


If the nominee director / shareholder is a signatory to the bank account (which EVERY bank will insist on), then he has access to all of your funds in the account.


It is impossible to open a bank account in a company name anywhere in the world without the Directors being a signatory (under Anti-Money Laundering legislation).

 

[dwilson]

Using a Nominee Director and/or Nominee Shareholder is very dangerous.
The nominee shareholder /nominee director of a company LEGALLY own and control the company under ALL Company law in EVERY country.


If you have a Nominee Director / Shareholder of your company then the banks will INSIST on him being a signatory to the account.


If the nominee director / shareholder is a signatory to the bank account (which EVERY bank will insist on), then he has access to all of your funds in the account.


It is impossible to open a bank account in a company name anywhere in the world without the Directors being a signatory (under Anti-Money Laundering legislation).

Nominee services as with all other financial products and services have inherent risk. This risk can be managed. Banks cannot insist that a director or a shareholder of a company be an authorized account signatory.

 

[hugger]

Nominee services as with all other financial products and services have inherent risk. This risk can be managed. .

The risk of using Nominee Directors and Nominee Shareholders has far too much inherent risk.


I would never allow access to my local bank account by anyone else.


And so I would never allow access to my offshore bank accounts by a stranger (nominee Director/shareholder)

Banks cannot insist that a director or a shareholder of a company be an authorized account signatory.

Yes they can. They will simply refuse to open the account.


It is impossible to open a bank account in a company name anywhere in the world without the Directors being a signatory (under Anti-Money Laundering legislation).

 

[GamingExperts]

Is it safe to use nominee director and shareholder?
Can director take over my offshore bank account then?

Using a Nominee Director is a very common practice. If you are dealing with a reputable service provider and have in your possession the correct documentation then the danger or risk is little to none.


In most cases the nominee need not be involved whatsoever in the account opening process and in fact in most cases has no idea where you have opened an account.


I hope this information is helpful.

 

[TVentures]

It is impossible to open a bank account in a company name anywhere in the world without the Directors being a signatory (under Anti-Money Laundering legislation).

False. No bank, no principality has the legal power, and vary rarely have the propensity to attempt to rewrite the Law of Capacities. Anyone can be a signatory with proper authorization. However there is a movement which would empower the banks to request that only signatories with at least 1% beneficial interest can be a signatory - however do not believe this will be so black and white (if successful) or else the mere idea of a foundation or other similar non-profit would crumble.


Don't do it. In order to make a nominee shareholder legit they have to receive a distribution just like everyone else. Do you want to be legally obliged to pay your nominee shareholder 1%??? Same for director - he must be paid a salary/wage or else is nothing more than a authorized agent with a fancy name. Should a situation arise and you have managed to not perform any more legal blunder, the courts would more than likely perceive you as the director and at the vary least tax you according to any evidence of "living outside your means" (and thats just assuming you adhered to all the other rules correctly)


The game is very simple, but the more you get caught up in "hiding" and "anonymity" - the more complicated it gets and the less the legal rules can benefit you.

 

[hugger]

Using a Nominee Director is a very common practice. If you are dealing with a reputable service provider and have in your possession the correct documentation then the danger or risk is little to none.
.

I believe that you are incorrect. Perhaps you would like to explain what "correct documentation" would over-ride the very strict provisions relating to the powers and responsibilities of Company Directors under the various Corporations law

In most cases the nominee need not be involved whatsoever in the account opening process and in fact in most cases has no idea where you have opened an account.

The quote above is incorrect on so many levels.


1. No "reputable service provider" would allow one of their Nominee Directors/Shareholder to be exposed to legal liability due to bank accounts being used for illegal and nefarious means.


2. Also, are you saying that a "reputable service provider" and a Nominee Director of a company can absolve themselves of responsibility from links to criminal and terrorist activities by simply saying that they did not know about a bank account that was opened under their Company's name? (Best of luck arguing that in a Court of Law!)


3. Do you really think that any respectable Bank in the world would allow a bank account to be opened without the Director of the Company being the signatory (or at the very least, a written agreement from the Director that a specific person can be a signatory to the account)?


In real, practical terms, it is impossible to open a bank account in a company name anywhere in the world without the Directors being a signatory or guarantor (under Anti-Money Laundering legislation).

 

[GamingExperts]

1. No "reputable service provider" would allow one of their Nominee Directors/Shareholder to be exposed to legal liability due to bank accounts being used for illegal and nefarious means.

That is not true. As a professional working int he field for 15 years I can tell you unequivocally that the Nominee Directors if not involved in the account opening process and possessing an indemnification have absolutely no liability for the actions of others.

2. Also, are you saying that a "reputable service provider" and a Nominee Director of a company can absolve themselves of responsibility from links to criminal and terrorist activities by simply saying that they did not know about a bank account that was opened under their Company's name? (Best of luck arguing that in a Court of Law!)

Yes, no competent court can convict someone for anything that they had no part in. Apart from this, performing proper DD on potential clients further reduces potential liability.

3. Do you really think that any respectable Bank in the world would allow a bank account to be opened without the Director of the Company being the signatory (or at the very least, a written agreement from the Director that a specific person can be a signatory to the account)?

Yes, we do it all the time, with old, well established, respectable banks. Of course a written agreement from the director is in hand, it is called a POA (Power Of Attorney) and again it is commonly used when Nominees are used.

 

[JohnLocke]

To update this thread and for those that don't have read the other forums here than below you find posts about this topic explaining exactly what a nominee director and shareholder is:

Nominee Director The Definitive Manual to What Is Nominee Director
Nominee Shareholder The Hidden Secret of What Is Nominee Shareholder

 

[negon]

You may find all what you need to know at the above links. You will still need to cinsult your agent to find out if he is using corporate or real person nominees.