Act of a Nominee director Malaysia who will not hold a single number of shares of a company. A local person is appointed as the nominee as safeness policy of the government. It is not easier to trust an unknown person who is appointed as a nominee. Officer of local and foreign banks asks the nominee about the company background. A nominee is powerless but acts as an important role of a company. A consent from nominee is needed when the foreign shareholding company gets the approval of a bank loan. A nominee director is questionable if a company fly without a payback bank loan.
If you are a foreign investor who is starting a business in Malaysia, then you need not worry about the ownership of your company as foreign investors are allowed 100% ownership of the business and they need only appoint a director who is a resident of Malaysia or better, yet you should go for nominee director services.
It is good to know that the company offering nominee director’s services has no power whatsoever over the company’s financial aspects. Even thoughhe/she has duties, rights and responsibilities as a director, the representative services offered are simply nominee and thing else. For this reason, the nominee director cannot be involved in running company matters such as applying for bank account, operational business, or signing off annual accounts to Malaysian authority.
Fees paid for nominee director services depends on your agreement with the accounting firm. You might also be required to pay additional fees such as refundable deposit in addition to monthly payments. Your company will need to show that it has been audited in the recent past by a firm based in Malaysia.
Our appointed nominee director works to execute your will since you have appointed him to the board. It is therefore important to have a signed agreement indicating that the director won’t at any time act contrary to your wishes.
If you do not have a local Malaysia resident director to meet the requirement of the Malaysia Companies Act, you can still engage our Nominee Director Service.
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