/What`s Nominee Agreement

What`s Nominee Agreement

In real estate, the Nominee contract can effectively transfer the legal ownership of a property to another person. The agreement also explains what can happen to the property and how to manage the benefits and responsibilities of that property. It can also indicate when or under what circumstances the property can be returned to the original part. As a general rule, ownership is not given indefinitely to the other person. In a Nominee agreement, your shareholder/director/professional commissioner registers the company without your name as a shareholder. Instead, both parties expect the shareholder/director/professional commissioner to be able to mortgage the shares on your behalf. 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. This evaluation list is provided to inform you of this document and to help you in your preparation. The purpose of this document is to be sure that a candidate, or really a “straw” in popular language, remains exactly that. It is very much in the interest of the owner to make this document also with best friends who sometimes can not become best friends.

Individuals or companies acting as a nominee must be compensated for the potentially harmful acts of the person who actually runs the business. The agreement is generally referred to as a compensation obligation and signed by those who purchase the company`s nominary services. Although there is a standard compensation obligation, they can sometimes be amended to include or exclude certain activities that one or both parties may require. The agreement must clearly state the candidate`s actions and transactions that he can make on behalf of the owner. The agreement must also mention that the nominaire has no economic interest in the property and must transfer to the owner all the financial revenues from a transaction he has made. 9. It is presumed and agreed between the parties that the relationship between the parties is only that of the principal and the sole candidate, that there is no intention to establish a partnership or agency relationship between the owner and the nominee, and that this agreement should not be interpreted in such a way as to establish trust, association or joint venture between the owner and the nominee.