Nominee Directors: Do They Have Control?

99% of the time, our client's main concern is staying completely anonymous.  Typically, if you're worried about maintaining your privacy, you can be considered a cautious person.  Therefore, it only makes sense why people would worry about opening a corporation and assigning someone else to be the President, Secretary, and Treasurer.  (if you are not familiar with how an anonymous corporation works, you can read more about the Anonymous Panama Corporation here)  The privacy benefits are obvious, but can this scenario be considered safe in the long run?

The short answer is a resounding "YES!", but let's get a better idea of why it doesn't matter who the front man for your corporation is, as long as it's not you.  The simplest form of security we offer against the nominee directors is having them sign undated resignations for every corporation we form.  That means that you have the power to remove or replace any director for any reason, and the nominee director will not be able to step in at any point.

The truth is, you'll never have to use those resignations in the first place, because the directors can't really do anything about any part of your offshore structure.  Let's pretend you get the most conniving, sly, and criminal nominee director you could find.  He'll try and get funds from the corporate bank account first, but guess what?  Your power of attorney and Nominal Shares (but not publically Registered) combo gives you complete control  over that, and the banks will not even open the door to him without getting authorization from you first, if they even take his request seriously at all.  OK, but if he had control of the corporation, he would slide everything out from under you.  He is the president, after all.  Only problem is, YOU control and own the corporation, because the Nominal Shares (but not publically Registered) are in your possession.  President is no more than a public title, it does not make him a shareholder, he is given no authority, and just like any corporation, the shareholders (in other words, you) make the decisions.

Just to keep you assured, our directors are completely ignorant to the happenings of your corporation.  They will never know who you are, and unless you request it for some special cases, they will have absolutely no information about you.