If you are considering hiring a nominee director for your company in Singapore, it is important to carefully choose the right individual for the job. A nominee director has the same legal responsibilities as any other director of a company, including complying with the Companies Act and acting in the best interests of the company. To ensure that you find a reliable and trustworthy nominee director, here are 5 questions to ask during the hiring process:
1. What is your experience as a director?
One of the first things to consider when hiring a nominee director is their level of experience. It is important to choose someone who has a solid understanding of the responsibilities and duties of a director and who has a track record of successfully fulfilling these responsibilities. Ask the nominee director about their previous experience as a director and any relevant education or training they have received.
2. Do you have any conflicts of interest?
The Companies Act requires all directors to disclose any conflicts of interest. It is important to ask the nominee director about any potential conflicts of interest that may arise as a result of their appointment. For example, they may have a financial or personal relationship with another director or shareholder that could impact their ability to make unbiased decisions.
3. How do you plan to meet your responsibilities as a director?
As a director, the nominee will be responsible for ensuring that the company complies with all relevant laws and acts in the best interests of the company. Ask the nominee director about their approach to fulfilling these responsibilities and how they plan to stay informed about changes in the law and industry.
4. Are you willing to enter into a nominee director agreement?
It is a good idea to enter into a nominee director agreement to outline the responsibilities and duties of the nominee director, as well as the rights and obligations of the real owner or shareholder. Ask the nominee director if they are willing to enter into such an agreement and discuss the terms that should be included.
5. Can you provide references from previous directorships?
As with any job, it is helpful to obtain references from previous directorships to get a sense of the nominee director’s experience and reputation. Ask the nominee director if they can provide references from previous directorships and be sure to follow up with these references to get a better understanding of the nominee’s capabilities.
When hiring a nominee director, be sure to consider their level of experience, any potential conflicts of interest, their approach to fulfilling their responsibilities, their willingness to enter into a nominee director agreement, and their ability to provide references from previous directorships. 3E Accounting Pte Ltd is a reliable corporate service provider in Singapore that can assist with the appointment and management of nominee directors, as well as a range of other corporate services.
