Shadow director

Shadow director,

Definition of Shadow director:

  1. Holder of controlling or majority stock (share) of a private firm who is not (technically) a director and does not openly participate in the firms governance, but whose directions or instructions are routinely complied with by the employees or other the directors. In the eyes of law, he or she is a de facto director and is held equally liable for the obligations of the firm with the other de facto and de jure directors.

  2. A person who is not officially a director of a company but whose directions or instructions the directors regularly follow.

Meaning of Shadow director & Shadow director Definition