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Showing posts from February, 2013

DUTIES OF NOMINEE DIRECTORS TO AVOID CONFLICT OF INTEREST: NOMINATOR VS COMPANY

The question of the study is when a conflict arises between the director's duty to the nominator and the duty to the company, who is prevail?  1.0 DEFINITION OF NOMINEE DIRECTOR        A nominee director is a person who is appointed to the board of directors of a company by a certain appointor. The appointor is usually a person with a large shareholding in the company and the nominee represents that appointor's interests. This frequently happens in joint venture companies individuals to sit as directors on its subsidiaries . It is common for a person who has acquired a substantial holding of shares in a company or for a financial institution which has lent a large amount to a company to seek to nominate one or more of the company's board members . 1.1 Types of Nominee Director        Where the nominee does not participate in the day-to-day running of the company, he is regarded as non-executive . In certain circumstances, also be regarded as independent . W