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5. I became a “nominee” director of a company controlled by my employer only because my employer asked me to do so. I was not involved in the operation and the management of that company, and it is now being wound up. Do I need to bear any liability in this regard?

Again, no matter whether you are a nominee director or not, no personal financial liability for the company’s debts has to be borne by you. However, a nominee director has the same duty to the company as a “real” director does. Therefore, if a nominee director has committed any wrongs, omissions, or criminal offences, that nominee director will suffer the same consequences as a director who took active part in the Company.

 

Also, if you have given any personal guarantees in your name to the creditors of the company, you will be liable for the debts under the personal guarantees given.

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