Definition

Nominal partner

Nominal partner is an individual who is neither a part-owner of the partnership nor an active participant in the firm’s affairs. Often this is a well-known person who lends a famous name to the company.

Nominal psrtners' responsibilities should be defined clearly. If a nominal partner misleads or deceives outsiders into thinking that he or she is a genuine partner, the true owners (and possibly the nominal partner) could be liable for debts and other commitments that the nominal partners makes.

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