Section 16 — Arranging for person to act as nominee director

(1)A registered corporate service provider for providing the corporate service of acting, or arranging for another person to act, as a director of a corporation must not arrange for a person to act as a nominee director of a company, unless the registered corporate service provider is satisfied that the person is a fit and proper person.

(2)In determining for the purposes of subsection (1) whether a person is a fit and proper person, the registered corporate service provider must —

(a)take all reasonable steps to satisfy himself, herself or itself that the person is not disqualified from acting as a director of a company under any written law; and

(b)consider such factors as may be prescribed.

(3)A registered corporate service provider who fails to comply with subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.