dummy director

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.
Sources further stated that a junior contract officer Abdul Rasheed as appointed a dummy director Human resources and administration metropolitan corporation.
IT has emerged that Hem Prakash Sharma-- a suspected key player behind Aam Aadmi Party's ( AAP) alleged dubious funding-- is a dummy director in several fraudulent companies.
In finding basis for a claim of breach of duty, Chancellor Strine emphasized that a director cannot be a "dummy director," as in "a mannequin, somebody who allows themselves to be appointed to something without any serious effort to fulfill the duties." According to the chancellor, an independent director must be able to tackle the various challenges that come with being based in the United States when the corporation and its operations are located overseas, including the language and cultural and other differences that exist.
"Patel was instrumental in getting dummy directors for shell companies used by Sandesaras," the sources said.
The searches at the Brahmputra group revealed that investments had been made in the name of dummy directors.
The Sandesara brothers reportedly controlled these shell and benami companies through dummy directors. ( ANI )
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 )
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.
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.