![]() ![]() Shadow directors are individuals who contribute to the management of limited companies without being formally appointed to their board. Read on to determine if a shadow director is right for your organization. Today, we’ll take a closer look at shadow directors, their roles and responsibilities, and the liabilities associated with the role. However, like other types of directors, such as inside and outside directors, shadow directors have different responsibilities depending on the company they serve. While they’re recognized by law as any other director, they don’t have the power or influence that comes with being an executive director. So what happens when you’re not around? When you’re out of town and unable to attend a meeting, who’s going to make those decisions for you? That’s where a shadow director comes in.Ī shadow director is someone who sits on the board and acts as an extension of your will. From approving expenditures to overseeing audits and employee performance reviews, you’ll have a lot on your plate. When you’re a director of a company or nonprofit, you often make critical decisions for your organization.
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