Dummy Director Law and Legal Definition
Dummy director is a board member, although nominally a director of a corporation is a mere figurehead and exercises no real control over the corporation’s business. Share of stock in a corporation is transferred to a dummy director in order to qualify him/her as a director.
A dummy director act and vote in the interests or on behalf of a non-member. Dummy directors are most common in start-ups that have just become publicly-traded companies, since managers need to fill up a certain number of directors in order to meet legal requirements and therefore appoint or elect a number of dummy directors to serve temporarily until permanent directors can be found. In the interim, they tend to act on behalf of the management.
Legal Definition list
Related Legal Terms
- Athletic Director
- Board of Directors
- Border and Transportation Security Directorate [BTS]
- Class Director
- Director of National Intelligence
- Director of the Institute of Museum Services [Education]
- Director of the National Institute of Education [Education]
- Director of the United States Patent and Trademark Office
- Director [Patents]
- Director's Alternate Decision