Articles

A company nominee, also known as a nominee director, is an individual or a company, that holds shares in a company on behalf of the true or beneficial owner. There is no explicit provision under Kenyan law on nominee directors. Thus, the default position is to treat their duties as synonymous with those of general directors, to wit; duty to exercise reasonable care and skill and duty to avoid conflict of interest.  However, given that in the end, the duty of a nominee director is to take care of the interests of the beneficial owner, the individual or the entity has to balance this with the interest of the company.