Is it risky for a nominal director not to hold shares?

If the nominal director is at fault, he needs to bear legal responsibility. If the company acts as a supervisor in violation of regulations and has no shares, it will also be implicated. This nominal supervisor is not recognized by law, and the supervisor of the company is the supervisor. The important company self-government organs established according to the company law are written into the company's articles of association for the record, which will not be just a name without responsibility.

Nominal directors, also known as nominal directors, refer to people who are nominally directors of a company, but actually do not hold actual positions or perform the duties of directors in the enterprise. Nominal directors are actually registered in the company's industrial and commercial registration and articles of association. Even if they sign an agreement with the actual controller not to participate in the actual management of the company and not to assume any responsibility, the agreement is only valid between the two parties to the agreement and cannot be against a third party. In other words, this internal agreement has no external effect. Therefore, the nominal director is still a director and is still bound by the Company Law.

The risks of the nominal legal representative of a limited liability company are as follows:

1. In terms of administrative responsibility, a nominal legal person may bear administrative responsibility for the company's illegal behavior.

2. In terms of civil liability, the nominal legal person may be liable for the losses caused to the company by itself, directors, supervisors and senior executives.

Legal basis:

company law

Article 149

Directors, supervisors and senior managers who violate laws, administrative regulations or the articles of association when performing their duties in the company and cause losses to the company shall be liable for compensation.