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Hello Mike,
Is a shadow director necessarily implied as a disqualified director under the relevant Act?
I’m trying to distinguish between shadow director and de facto director.
The de facto director performs as a director but has not been OFFICIALLY appointed.
However, shadow director seems to avoid legal responsibility of a director, but exerts his influence to the day-to-day running of the business.Practically they do the same job in nature. They seem an abuse to me! I’m confused.
There is a need to distinguish the two … otherwise there wouldn’t be two titles
A de facto director takes an open, active part in the running of a company even though not properly appointed
A shadow director takes a clandestine role in the company but actively (secretly) influences the decisions of the public view directors
Is that better?
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