Business Ethics and Corporate Governance, Second Edition

NOMINEE DIRECTORS

A nominee director is generally appointed in a company to ensure that the affairs of the company are conducted in a manner dictated by the laws governing companies and to ensure good corporate governance. A nominee director, as an affiliated director, is nominated to ensure that the interests of the institution which he or she represents are duly or effectively safeguarded. In India, the Companies Act does not distinguish between other directors and a nominee director with regard to liabilites for violations of laws by companies. In the case of a nominee director appointed to represent a financial institution in an assisted company, normally the statute governing the concerned financial institution contains special provisions ...