A nominee is an officially enrolled intermediary who functions as a company director.
This is entirely legal and many companies use them for a variety of purposes.
In some juridictions, the names of company directors are placed on public records.
The nominee director serves as a "proxy" for the beneficial owners.
Upon appointment of a nominee director, a document called Power of attorney is issued in the name of the director to the attorney ( beneficial owner ).
On the basis of the given document, the person indicated in the Power of Attorney, acts on the behalf of the company and as a legitimate attorney. can sign documents, contracts and can open bank account.
The power of Attorney is issued for a period of one year. This service need to be renewed each year and it can be stopped at anytime upon request.