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.

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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The MCA also said that it has taken several steps to end the practice of dummy directors including seeding Director Identification Number (DIN) with permanent account number (PAN) and Aadhaar at the time of DIN application through biometric matching for new applications.

Govt. strikes off 2.24 lakh companies post demonetisation for remaining inactive

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