Who is a Nominee Director and Dangers of Becoming One

In the world of business, the term nominee is usually used to refer to the person whose name will be on the list of the directors, but in the real sense, the individual does not have real powers. Such people only implement the instructions that they have been assigned by the entities that nominated them. A nominee director is a non-executive director who is appointed by the shareholders of the company. The shareholders hope that the director will fully represent their interests during the board meetings.

A nominee director can sit on the board of both a public and private company. Under normal circumstance, investors or shareholders choose someone who will not only represent their interest but also be loyal to them. Even while representing the interests of the nominating shareholder, the director is also expected to act in good faith and stay within the legal framework of the company. While executing the duties, the director is also expected to exercise some level of independence especially in situations where there’s conflict of interest by the shareholder. We speak to a nominee director services provider Director Plus Singapore to find out more about the roles & responsibility of a nominee director.

Roles of a Nominee Director

Maybe you are about to be nominated to be a nominee director and you are wondering what your roles & responsibility will be. You will just be like any other company director and your roles will be equal to others. Your title won’t make you a weaker member of the board. Unlike the popular notion, a nominee director is not just an agent of the investor. You will be required to supervise and oversee all the affairs of the company. Failure by the director to stay within the company’s constitution will lead to some repercussions.

Dealing with Conflict of Interest

As a director, you will be expected to act just like any other company director especially in situations where there might arise the conflict of interest. You should be aware of such situations and know how to act in case you find yourself in them. For instance, if there is a conflict of interest between the nominating shareholder and the company, the director is required to disclose his or her interest on the matter. The disclosure should be made in writing and should be made public during the board meeting. The director is required by law to explain the nature of the interest and how it can affect the company. This information will be used in drafting the final judgment of the issue at hand.

The rules pertaining conflict of interests apply to both public and private companies. In some cases, incidences of conflict of interest may force all the directors to disqualify themselves from attending the board meetings. If the shareholder who nominated you has some special interest on the matter such as a contract, the board can decide to exclude you from participating in all the meetings concerning the contract. During such scenarios, you have no other option but to oblige with the rules at hand even if you are pressurized by the nominating shareholder.

Risks of Being a Nominee Director

As much as the title may be lucrative, there are some risks that come with it. Most of the risks of occur if the shareholder uses the director wrongly. The risks may not only affect the director can also have some impact on the nominating shareholder. Some of the major risks include:

  • Suffer from personal liability: As a director, your assets may be seized in case the company suffers from any loss.
  • Criminal liability: The director will be subjected to criminal prosecution if found engaging in any actions that are contrary to the company’s constitution.

How to Avoid the Risks

There are measures that both the director and shareholder can take to avert the risks of being a minimal director. If you are about to be nominated as a nominee director in a private company, you can sign a shareholder’s agreement with nominating shareholder. In this agreement, some powers of the director will be given back to the shareholder. Even though this move will be stripping you of some powers, the agreement will be protecting you from some liabilities. However, this agreement is only applicable in some jurisdictions. It is also prudent to do some background investigations on the interests of the shareholder before accepting the nomination. Check if they have any hidden agendas.

Crucial concepts of Crowdsourcing

all about crowdsourcing

Running a small business apparently, keeps you busier than you could have imagined. In today’s world, organizations use many platforms to reduce costs, increase creativity and leverage outside ideas. From designing logos to creating blog content along with getting involved in the community effort, there are actually endless ideas to be generated and big decisions to make. The speed and scale of digital disruption is placing large and small businesses under unprecedented pressure to transform the way they operate and anticipate new challenges as well as opportunities that massive technological change brings. How can you find the time to come up with ideas and opinions that will both work for your small businesses as well bring in new customers? Crowdsourcing might be your answer!

As you can see this word is a combination of two words ‘crowd’ and ‘outsourcing.’ This defines the primary aim of this, as it to work and outsource it to the workers. Companies from global enterprises to small firms have learned that tapping into the creativity of the masses can be an efficient way to get fresh content. These firms can ask crowds to find solutions to specific problems and figure out what kind of challenges that can be solved within certain contexts. Sourcing ideas and content for advertisements from the public have become a tool that brings varied skills, backgrounds, along with perspectives to address a company’s needs in entirely new and fresh ways. Many local service providers help to gather a crowd, thanks to social media platforms. As with all things, now here are the advantages and disadvantages of crowdsourcing;


  • This is an efficient way of getting relevant information and ideas for your business at reasonable cost
  • It enables cheap labor results less credible product as compared to professionals
  • It has become very popular for both governments and businesses to gather data and opinions
  • It’s a great way to engage people
  • No compensation to any of the participants


  • It can hurt small businesses
  • It lacks quality control. It tends to be of low quality
  • Crowdsourcers tend to be from low-income economies. Some believe that their willingness to work for such low rates is being capitalized upon unfairly

Various Platforms for Crowdsourcing

There are a growing number of platforms on the market and depending on your product different ones may work better than others. The platforms have distinct business models to support crowd members to play a part in development responsibilities and submit their solutions. Here are the top platforms of crowdsourcing and they include;


TopCoder is a good example of an ideal platform on which firms can deliver their software developing tasks and crowd members. Several companies around the globe have used TopCoder to build up new Web interfaces that work with legacy systems. This platform assesses the project and proposes a solution to reduce its complexity.

(ii) Open Source Platform

This category of the platform provides an open feature for users to find, create, download as well as publish open source software for free. Substantially, open source platform provides broad support for communication and cooperation by providing various communication mechanisms.

(iii) Collaborative Testing Platform

This platform provides services for enterprises that support different testing types. With the collaborative testing platform, any crowd member can register as a tester and testers are rewarded according to their evaluation. It’s evident that the platform assigns a project manager to help out the enterprise coordinate the whole testing progress.

(iv) Enterprise Collaboration Platform

This type of platform provides comprehensive as well as extensible support for each feature of collaborative software development. This platform offers full life-cycle tools and process support by incorporating information and responsibilities across different phases.

(v) Trends in Collaborative Platforms

This platform combines many facilities for communication by incorporating version control system and issue trackers to assist crowd members collaboratively work on an individual task and even whole projects.

Having discussed and analyzed this marketing phenomenon, we can conclude that this aspect is mainly attributed to its appeal to the consumer’s intrinsic values and growing environmental trends. Nowadays, crowdsourcing is often associated with start-ups and entrepreneurs who value the input of their small networks. Therefore, this tool is advantageous simply because it increases brand loyalty and awareness as it can leverage consumer’s creativity to market their products.