Nominee Services Agreement

A nominee service agreement is a legal document that outlines the terms and conditions for using a nominee service. A nominee service is a third-party who is appointed to act on behalf of another party, usually in a financial or legal capacity.

Nominee services are commonly used by businesses and individuals who wish to protect their privacy and reduce their exposure to legal and financial risks. By appointing a nominee, they can keep their identity and personal information private, while still maintaining control over their assets and transactions.

The nominee service agreement typically defines the relationship between the parties involved. It outlines the scope of the services provided by the nominee, the fees charged, and the responsibilities and obligations of each party.

Some of the key provisions typically included in a nominee service agreement may include:

1. Scope of services: This section outlines the specific services that the nominee will provide. It may include items such as acting as a director or shareholder, signing legal documents on behalf of the client, or holding assets in trust.

2. Fees and payment terms: This section sets out the fees charged by the nominee for their services, as well as the payment terms and schedule. It may also include information on any additional expenses that may be incurred, such as legal or administrative fees.

3. Term and termination: This section outlines the length of time the agreement will be in effect, as well as the circumstances under which it may be terminated by either party.

4. Confidentiality and disclosure: This section outlines the confidentiality obligations of the nominee, as well as any exceptions to this rule. It may also include provisions allowing for the disclosure of information in certain circumstances, such as for legal or regulatory reasons.

5. Liability and indemnification: This section outlines the responsibilities and obligations of each party in the event of any legal or financial liabilities that may arise. It may also include provisions for indemnification and liability caps.

A well-drafted nominee service agreement can provide important legal protections and help ensure a smooth and efficient relationship between the client and the nominee service provider. For businesses and individuals looking to protect their privacy and reduce their exposure to legal and financial risks, a nominee service agreement can be an essential tool.