In the global village that is our world management and other services have become a hot commodity for many reasons. In many cases owners may prefer a director with credited managerial experience in the jurisdiction of registration, someone familiar with local laws, the local language and mentality – a person capable of increasing company profits and streamline its business management. In fact, many countries impose regulatory requirements of companies choosing to incorporate within their jurisdiction that they appoint at least one local director. For example, in Singapore at least one company director must be a local citizen.
Another reason is rooted in politics – companies owned or managed by Israelis may not conduct business in Arab states, and so are required to keep their Israeli nationality confidential.
In the case of nominee shareholders the situation is slightly different. They differ from trustees (described in the Trust page of this site - click here). While trustees play an active role in managing the assets under his/her care and distribution of profit to beneficiaries, nominee shareholders hold the registered capital of the company for the beneficial owner: they may not do anything, including make managerial decisions or transfer shares to a third party without explicit permission of the beneficiary.
In order for the beneficial owner to act on behalf of the company, including sign documents, commit to contracts, and manage its bank account, authorization must be given through power of attorney. Moreover, nominee shareholders must sign a document called a “Declaration of Trust” to insure the beneficiary’s continued ownership of the asset.
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Information provided in this site does not constitute legal advice or consultation of any kind, and may not be relied upon to be currently updated. For professional and comprehensive information regarding the management and trust services abroad, please contact MELLIUS via phone, Tel: +972 1-800-800-345 or by submitting the following contact information form.