Why Use Nominee Agreement

Although widely used by many organizations in Indonesia, the Nominee agreement is still not preferred by the government under Indonesia`s investment law. Therefore, those who are registered in the statutes of a limited liability company are both beneficiaries and legitimate owners. There is no difference between the two. The candidate is the rightful owner only on behalf of the company and the economic beneficiary holds a reasonable interest in these shares. In short, an appropriate interest is an interest or right to property that gives the right holder the right to acquire a formal title from the person registered as the owner (nominator). Why do people use a nominal shareholder service to register a business? There are two main reasons why people use a nominee participation service when they register a limited company. The first reason is compliance with legal requirements. The second reason is to allow the beneficiary to remain anonymous as a shareholder if this is one of his requirements when acquiring the shares. Under a Nominee agreement, the beneficial owner designates a professional shareholder if he does not wish to register the shares under his or her own name. The nominee collects income and revenue from the execution of business transactions related to the property on behalf of the owner.

The Nominee agreement requires the nominee to transfer to the owner all financial instruments and proceeds of transactions made in the course of normal business activities. As a condition of the agreement, the candidate assumes no responsibility and is not responsible for the performance of contracts between the owner and a third party. For legal reasons, a nominee agreement is an agreement in which the owner registers the property on behalf of a candidate, so that the applicant legally retains the property and all related rights, such as mortgages, interest, relief, licenses, rents, statutes and fees. Unlike the owner, the nominaire has no favorable interest in the property. A power of attorney is made available to the buyer by the Nominee to give that person the power to present himself and act for the business. A nominee is a person, partnership or company that is responsible for the holding and management of shares or other real estate as a registered legal owner in the name of the actual owner (effective beneficiary). The nominee holds the shares or ownership of the trust and will have his name and information listed in the public documentation instead of the actual beneficiary with effective ownership and control of the shares. As with all contracts, nominating agreements require different things. The first thing that requires agreement is an offer and acceptance by two separate parties.

The agreement must also be implemented and signed by the competent parties, i.e. those who, in their jurisdiction, are not minors, are not in a state of demonstrable mental illness or under the influence of a substance likely to affect the judgment. The applicant cannot make decisions about the property without the express and written permission of the owner.