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A nominee agreement allows one party (the principal) to grant a mandate to another party (the nominee) to act on its behalf.
Why do you need a nominee director? You must provide the name of a director to register your business successfully. This name will be added to the board of directors' list. The advantage of using a nominee director (ND) is the anonymity it gives business owners.
Procedure for Appointment of Nominee DirectorDisclosure of the agenda of the meeting.For conducting a board meeting, pass a board resolution to appoint a nominee director under section 161(3).Authorising the company secretary in case of absence of the company secretary.More items...
A Nominee Director is a Director appointed to the Board to represent the interest in the Company. The Appointment of Nominee Director is done by any law for the time being in force or by agreement or by Central or State Governments by its shareholding in Government Company.