What is a Nominee Director?

A nominee director is an individual appointed to a company's board to formally represent the interests, instructions, or wishes of the person or entity that appointed them (the "nominator," like a major shareholder or business owner). They fulfill legal requirements, such as local residency, and appear on official records, but have no real operational control and merely acting as a representative for the actual decision-maker(s), often to maintain the beneficial owners' confidentiality or meet local regulations for foreign companies. Though a non-executive and has no real decision-making powers or control over the business operations, the nominee director still carries the general responsibility and inherent liability of directors to the potential risks of the business.