What is the difference between a nominee director and a shareholder?

A director manages board responsibilities, while a shareholder owns equity. The roles are legally and practically different even if people confuse them.

A nominee or temporary resident director arrangement should be carefully documented with scope, decision-making boundaries, indemnity expectations, insurance expectations, and a defined transition path.

The service is meant to solve a specific structural or timing issue, not to replace long-term management, regulated advice, or the client’s own governance responsibilities.