nominal partner

nominal partner

One who lends his or her name to a venture or business and appears to be a partner, but in truth is not. Care should be taken because nominal partners may be held liable for partnership debts and liabilities, especially if someone can prove they would not have done business with the partnership but for their mistaken belief that the nominal partner was a true partner.

References in periodicals archive ?
It also would allow for a UN special representative, who would act as a nominal partner in the political reconstruction.
Examples that do illustrate situations in which the anti-abuse rule would be applied include the following: * Inclusion of a temporary partner and a nominal partner in a partnership, as part of a scheme to generate artificial losses (Example 9).
The Claimants were kept as nominal partners in the Company so that the Defendants' could benefit from the Claimants' license.