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Nominee Director's Service

Act of a nominee director Malaysia who will not hold any shares in the company. It is the policy of the government to appoint a local person as the nominee to ensure safety. It is difficult to trust an unknown nominee. The nominee is asked about the background of the company by officers of local and foreign banks. Despite being powerless, a nominee plays an important role within a company. When a foreign shareholding company applies for a bank loan, consent from the nominee is required. Nominee directors are questionable if a company does not repay a bank loan on time.

Nominee Director Responsibilities

It is not necessary to worry about the ownership of your company if you are a foreign investor starting a business in Malaysia, as foreign investors are allowed to own 100% of the business, and they only need to appoint a director who is a Malaysian, or you may opt for a nominee director.

  • Nominee directors do not own shares of the company.
  • He/she does not interfere with the company’s business operations.
  • He is not a signatory to the corporate bank account. Therefore, you can rest assured that all your company’s finances are secure.
  •  Nominated directors represent only the interests of their nominators.
  • As a nominee director, it is his fiduciary duty to avoid conflicts of interest between the interests of the nominee and the interests of the company.

Aspects to consider when selecting nominee directors

  • Responsibilities of nominee directors: –It is important to know that the company providing nominee director services has no control over the financial aspects of the company.The representative services offered are simply nominees and nothing else, even though the director has duties, rights, and responsibilities. Therefore, the nominee director is unable to participate in company activities such as applying for a bank account, conducting business, or signing off the annual accounts for submission to Malaysian authorities.
  • Fees associated with nominee director services are determined by your agreement with the accounting firm. A refundable deposit may also be required in addition to your monthly payment.
  • As per the signed agreement: – As your nominee director, he is responsible for executing your will as you have appointed him to the board of directors. A signed agreement indicating that the director will not act against your wishes at any time is therefore essential.

You may still engage our Nominee Director Service if you do not have a Malaysian resident director to meet the requirements of the Malaysia Companies Act.

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