Under many circumstances, an Individual may not be able to act as a Director of a company and requires the use of other persons as directors. In most cases, another corporate is made a director and that corporate entity is ultimately managed by a third entity. In another case, another layman who has no interest in the company is made a nominee director and the real beneficial owner act under a Power of Attorney.
A professional director, on the other hand, is not a normal nominee director but on the other hand, is a well-qualified professional in the corporate sector like a lawyer or a certified accountant who is appointed to the board for his expertise and to provide actual authenticity to the Board of a company.
A Professional Director is well aware of the company and financial legislation and can also provide advice to the company in addition to acting as a potential nominee director. This is also helpful to show ‘real substance’ in the company as required in many modern-day taxation legislations.
No designation has been made by the Texas Board of Legal Specialization for a Certificate of Special Competence in this area.