The primary function of an appointed director is to identify the true owner of the Offshore Company from any publicly visible relationship with the company. This can be achieved at different levels, depending on the requirements and circumstances of the client.

In this case, the management is carried out by a third professional director.

Why do I need it?

The appointed external director does not actively participate in the ordinary affairs of the IBC; he simply holds the position. The best way to describe it is with the term designated director. In this case, the owner of the company (client) takes active and personal charge of the daily operations of the company.

The director appointed his functions and appointment is granted through a special resolution or by proxy under the name of agent or representative of the client's own company.

The Nominee Director has no authorization or power to sell assets, establish and sign any contract or other business documents, or conduct business or initiate or expand new business without the written permission of the ultimate beneficiary.

According to this procedure, the client who owns the company or offshore company signs all business correspondence, contractual documents, invoices and accounts of the company with his own signature, as if he were the director.

Usually, the Nominee Director does not sign contracts and other commercial and legal documents, this would be done exclusively and only at the request of the beneficial owner.

Considerations for engaging the services of an appointed Director

One of the main reasons for the appointment of a director lies in the payment of personal taxes by the owner, protecting the assets from possible litigation and maintaining differences in transactions between the offshore company and the national company, or simply because of the desire for confidentiality.

If these considerations are important, the services of the nominee director should be considered. Often, an offshore company can only remain legally tax-free if it is managed by an external director. The nominee director would effectively protect the owner of the company from any publicly visible relationship with the offshore company.

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