What is a Professional Director, and the reasons for using this service ?
A Professional Director is a third party, who is appointed to act as a Director of a company. This is a device used for various reasons.
In some jurisdictions, it is a legal requirement that at least one director of the company is a resident of that particular offshore jurisdiction (for example, Singapore). In this case, a more accurate description of the service would be a Resident Director.
The more common use of the Professional Director service is to ensure anonymity. Under the law of some countries, information on directors and/or shareholders must be registered in the public files of the Companies Registry. Where this is the case. only by using nominee directors and/or shareholders can the client’s anonymity and confidentiality be ensured.
Even in jurisdictions without publicly accessible records, there are privacy and confidentiality reasons for appointing Professional Directors. When conducting business, legal contracts, letters of understanding and other corporate documents will often require signatures and disclosure of the names of Directors and therefore again, only by using a Professional Director can complete anonymity be guaranteed. Anyone performing a Company Search on a company with a Professional Director would be unable to discover in whose name the Professional Director was registered.
Are there any risks in using a Professional Director?
The beneficial owner would retain complete control of the company through Power of Attorney that we supply. This ensures that the true owner of the company is empowered to run the business, manage the company’s activities, and open and operate the company’s bank accounts. The Professional Director will also sign an undated letter of resignation that can be submitted on their behalf at any time you wish.