dummy director

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Dummy Director

A member of the board of directors that acts and votes in the interests or on behalf of a non-member. Dummy directors are most common in start-ups that have just become publicly-traded companies, because managers need to fill up a certain number of directors in order to meet legal requirements and therefore appoint or elect a number of dummy directors to serve temporarily until permanent directors can be found. In the interim, they tend to act on behalf of the management.

dummy director

The director of a firm who acts and votes according to the wishes of another party who is not a member of the board.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in classic literature ?

"This delicate, aristocratic-featured gentleman was a dummy director and a tool of corporations that secretly robbed widows and orphans.

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"Patel was instrumental in getting dummy directors for shell companies used by Sandesaras," the sources said.

ED gets court's nod to send LRs to 21 countries in bank fraud case

The searches at the Brahmputra group revealed that investments had been made in the name of dummy directors.

I- T raids on real estate developers

The Sandesara brothers reportedly controlled these shell and benami companies through dummy directors. ( ANI )

India asks Nigerian Interpol about Nitin Sandesara's whereabouts

The Sandesaras reportedly controlled these shell and benami companies through dummy directors, who were shown as employees of various companies of the Sterling Group.( ANI )

CBI has no input on fugitive businessman Nitin Sandesara: Sources

After detection of fraud, he along with Nehal Modi took 50 Kg of gold and substantial cash from Dubai and directed dummy directors not to reveal his name before the authorities.

Red Corner Notice issued against Nirav Modi's confidante

The Directors in the said companies were namesake or dummy Directors, acting on the directions of office personnel of M/s UB Group, who were at the command of Mallya," read a statement.