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A nominee shareholder is a non-beneficiary role whereby a person or corporate body is appointed to act on behalf of the true shareholder in a name-only capacity. In most cases, a nominee service will be used when a LLC shareholder wishes to remain anonymous and keep their details off the public register.
A nominee director is a person or corporate body appointed to act in a non-executive capacity on behalf of another person or corporate body.
The primary purpose is to protect the identity of the true company director; therefore, the role of a nominee is in ‘name only’ and their details will appear on public record in place of the real officer’s details. Nominees are given no executive ‘hands-on’ duties but they are often required to sign certain internal documents on behalf of the true director or secretary.