Nominee Director for Singapore Companies
For people who are registering a company in Singapore or even start a private limited company there are requirements that need to be met. One key requirement is assigning a nominee director to the company that matches the criteria to take on the roles and responsibilities assigned to him. A nominee director for a company is a person that acts as non-executive director on the board of director of a company. Nominee directors can be assigned to companies by outsourced consultants if non residents are looking to register a company in Singapore.
Who is eligible to become a nominee director of a company?
Amongst the stakeholders of a company, the nominee director is in charge of managing and leading the company towards the right path. A nominee director of a Singapore company must be a Singapore citizen and permanent resident address. In addition to this, it is key that they are an EntrePass holder and employment pass holder or dependant pass holder. Aside from these statutory requirements, the director will not be directly involved in the operational management of the company however, he is required to be on the board of trustees and therefore is involved in the financial procedures, decisions and overview of the company.
Roles and responsibilities of a nominee director
As mentioned above the nominee director does not have any operational responsibilities in the company. Also, he is is not permitted to enter into any business contracts, financial or moral obligations. This director must comply with the Companies Act of singapore. Duties the nominee director will be responsible or involved in includes:
- Fiduciary duties, meaning they must be loyal and act in good faith
- Keeping a record of statutory books
- Lodging changes in statutory filings
- Keeping accounting records of transactions and financial position of the company
- Preparing profit and loss accounts and balance sheets on a yearly basis
Conditions to the nominee director services
There are a number of conditions of service for a nominee director. These include:
- The position is offered solely to adhere to statutory compliance
- The nominee director will have no say and will not be involved in any way with the operational running of the company
- Two other directors must be appointed to the board as they will be in charge of managerial and operational activities.
- A copy of all bank and financial statements in order to prove the company does not have any debt
The nominee director will not sign for any contracts, financially or commercial