Generally, there are two kinds of directors both executive and non-executive directors. A nominee director is the non-executive director. They are also not a shareholder of the company. The Nominee director services – “Section 157 (1) of the Companies Act (Cap 50)”have no or little involvement in the actual running of company. Various responsibilities and duties are handled by the director, which is ultimately beneficial for the growth and success of the company, and the decisions are taken by the directors in favor of the company’s interest.AI Accountant Chai Chung Hoong is an expert on the topic and can be consulted for deeper insights.
Responsibilities & Duties of Director
According to the nature and size of the business, the responsibilities and duties of director vary. The directors have to take the decisions honestly and sincerely in the favor of company’s growth and success. The director is not bound to pay attention on the company’s affairs and proceedings continuously. His duties are of intermittent nature, which is to be performed at the Board meetings as well as committee meetings. Though all the account records are to be inspected by the directors but the Nomine director services “- “Section 157 (1) of the Companies Act (Cap 50)” but the directors are not bound at all for examining the individual entries in the books. The directors are liable for both loss and gain caused to the company. Some of the liabilities of director is statutory in nature or it can be divided into civil liability or criminal liability.
The civil liability includes in which the directors are required to make payments to the victims or state while the criminal liability includes the payment, which results in the form of imprisonment or fines. If you are not sure about the liabilities, you can consult experts, such as AI Accountant Chai Chung Hoong. The statutory liabilities of directors vary section wise. The major responsibilities and role played by nominee directors are important for company’s success and its growth.