How to protect assets from nominee’s abuse?
The business of nominees and nominee service providers is normally regulated by law. Mostly, by fiduciary management and trust law.
Such services are usually provided by persons who have proper professional qualifications and who, in a number of cases, hold relevant licences. A nominee director or shareholder who abuses their formal powers is at best disqualified and at worst faces criminal prosecution.
As mentioned above, when preparing nominee service documents, the rights of the owner are secured by blank instruments of transfer of shares, resignation letters, and nominee director change resolutions.
Unfortunately, it has to be said that cases of abuse of power by nominees do happen. But this is a rare exception! The only way to protect yourself from such bad practice is to use nominee service providers with a long-standing and untarnished reputation.