What Is the Difference Between a Nominee Director and Independent Director?
Both the nominee and independent directors are non-executive directors who are not part of the management. The difference between the two directors is that the independent director is free from business relationships that could substantially interfere with his independent judgment when exercising his duties. A nominee, on the other hand, does not have any independence in his opinions. The main difference is, therefore, on the control of the decisions they make. A nominee makes decisions based on the directives of the appointor, but the independent one makes autonomous decisions without the control of others. However, all directors act in the best interest of the company — sometimes in the interest of an appointor when it comes to a nominee. Generally, all directors have the same responsibilities and duties towards the company regardless of the title they carry.