Appointing a Nominee Resident Director

In Singapore, at least one director on the board must be a resident of the country. A resident director may be someone who either be a Singapore citizen, or a Singapore permanent resident. If a company does not have a resident director, the company may require the engagement of nominee director services to comply with the regulations.

Commonly, a nominee resident director is appointed primarily to meet legal requirements and does not play an active role in running the business. They may not have any involvement in the day-to-day operations or decision-making processes of the company. Their role is limited to fulfilling the residential directorship requirement as mandated by the law.

Nonetheless, the nominee resident director’s responsibilities include ensuring compliance with statutory obligations, assisting in filing annual returns and financial statements, and maintaining proper corporate governance practices. They may also act as a liaison between the company and the local authorities, if required.

Subject to the acceptance by the nominee director to take-up such appointment, it is advised that companies engage professional firms that offer nominee director services so that they can ensure that they receive accurate and timely advise on corporate statutory matters. It is important to note that while the nominee director’s name may be used for legal purposes, the actual control and management of the company remains in the hands of the rightful directors and shareholders.

18 December 2023