Who is a Nominee Director?
A Nominee Director is an individual appointed to the Board of a company to represent the best interests of their appointer. The role of a Nominee Director is quite dynamic in nature; they technically play the part of a non-executive director on the Company's Board of Directors as well as a Resident in a tax haven acting as a trustee. They can be appointed by a Shareholder, Creditor, Investor, or even a Financial Institution.
Thus, a company incorporated in Bahrain would see a Nominee Director who acts differently compared to their associates. They are quite literally "Nominated" by a shareholder of the company in Bahrain to represent particular interests and has loyalty to their respective appointer.
The Nominee Director plays a crucial role in representing you and your best interests towards the Board of your Company in Bahrain. Due to the extent of criticality of this job, it is essential to shed light and make the critical responsibilities entirely clear. There are several rights, limits, and responsibilities which must be upheld by the Nominee Director.
- Note that a Nominee Director shall be appointed to appear in official track records held by the company. They are not, under any circumstance, allowed to take over any day-to-day operations or executive decisions which are generally carried out by the business.
- When a Nominee Director is appointed, they are allowed to act as a signatory for a limited set of activities which have already been spelled out.
- The most quintessential signatory responsibility of a Nominee Director is the signing of annual accounts and returns on account of the company's official accountants.
- In rare cases, the Nominee Director also acts as a secondary signatory on the company's corporate bank account, after special arrangements.
- The Nominee Director must always ensure that the real name and identity of their appointer must be kept away from all official records and databases of the company.
Why Is a Nominee Director Required for a Business in Bahrain?
- The first and foremost reason as to why the services of a Nominee Director are availed is because the Nominee Director cloaks their appointer who may be the Shareholder, Creditor, Investor or a Bank Representative of the organisation.
- The Nominee Director serves as a link of the appointer and the business, the Nominee Director acts as a continually loyal gauge between the organisation and the appointer, and prevents the appointee from being freely connected with the responsibility of the business.
- If you appoint a Nominee Director in the case of holding shares for you, your anonymity shall be ensured without compromising your subtleties.
- If you don't wish to show up on this database of the Companies House for reasons of anonymity and secrecy or even business sensitivities, a Nominee Director can be designated to be the official open face of the appointer to the business or company.
Duties and Responsibilities of a Nominee Director in Bahrain
If you appoint a Nominee Director, he/she should comply the following duties and responsibilities.
1.Oversee and Manage Business and Affairs of the Company
The fact that a Nominee Director has been employed by an investor or an individual on the board of the company as a representative, the obligations of a Nominee Director do not diminish due to the fact that an investor has assigned them. They assume meaningful accountability in setting structure and tactics for the organisation. The Nominee Director will be in charge of investigating and evaluating present as well as future opportunities, impending or potential dangers, and risk in business conditions which may affect operations.
2.Safeguards the Company's Mission, Vision, and Long Term Goals
The Board of Directors of a company in Bahrain work on a synergy of cooperation with their peers and colleagues regularly on different agendas to foster the company's vision and mission. The Nominee Director assists and even provide insights during these board meetings, for example, they offer help on behalf of the appointer on matters such as corporate objectives, arrangements and the general culture to be taught to abide by throughout business ventures.
3.Shelter Journals and Records of the Company.
Nominee Directors guarantee that the journals and books of records are protected and kept to be used for times which require documents to be procured for proof. Sometimes, the Nominee Director is required to help by standing witness and go ahead with the obligatory procedures for the organization even though it's legitimately viewed as a different element.
4.Messenger to the Nominated Shareholder
As Nominee Directors have continual loyalty to the individuals who hired them, they stand for these individuals, and thus they act as a catalyst for communicating the nominated shareholder's interests. Nominee directors regularly enroll themselves onto the board with the objective that the individual they represent can have an element of authority and control over organizational issues. Moreover, they must forward information on whatever transpires to the shareholder.
Nominee Directors are extremely valuable for an offshore company in Bahrain when privacy is held at a level of utmost importance. By hiring a Nominee Director between the company and shareholder, you add a layer of anonymity.
For more information on Nominee Director Services for your business in Bahrain, hop on to Business Setup Worldwide where we specialize in assisting you throughout the process of company formation and incorporation in Bahrain. And all the post-establishment procedures which follow, such as intellectual property rights protection, company secretarial services, visa services and establishing a company bank account. In case of query, do contact us-we'd be happy to help!