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Simple English definitions for legal terms
dummy director
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A quick definition of dummy director:
A dummy director is a person who is appointed to a board of directors but has no real power or control over the company's business. They are just a figurehead and do not manage or guide the organization. They are also known as accommodation or nominal directors.
A more thorough explanation:
A dummy director is a member of a board of directors who has no real power or control over the corporation's business. They are merely a figurehead and do not actively participate in decision-making.
For example, a company may appoint a well-known celebrity as a dummy director to improve their public image, but the celebrity may not have any actual involvement in the company's operations or decision-making processes.
This term is important to understand in the context of corporate governance, as it highlights the potential for companies to use figureheads to create the appearance of diversity or legitimacy without actually giving power to those individuals.