Canada FAQ
What are the risks of using a nominee director in Canada?
The main risks are governance mismatch, incomplete disclosure, bank or counterparty concerns, and pressure to use the appointment beyond its agreed scope.
The main risks are governance mismatch, incomplete disclosure, bank or counterparty concerns, and pressure to use the appointment beyond its agreed scope.
The main risks are governance mismatch, incomplete client disclosure, banking or counterparty discomfort, and the possibility that the structure is asked to do more than the agreed scope allows.
Those risks are reduced through diligence, clear board records, insurance expectations, resignation planning, and refusing mandates that do not fit the service model.
Key points
- Governance and disclosure risks are real.
- A limited scope should be respected in practice.
- Some mandates should simply be declined.
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