There are various legislative and regulatory requirements and precedents relating to the duties of directors and trustees and their obligation to exercise effective management and control over the assets and the affairs of a company or trust. Aspen Global Incorporations Limited will ensure you meet them all.
If the client exercises control over bank accounts his action can be deemed as direct management and control over them even if they do not appear as an officers or trustees of record. Statutory authorities often seek to apply "the management and control test" to assess whether the income earned by an entity controlled in a low tax area should be taxed as if they were resident in the high tax area.
In many countries, when the client continues to manage the company or trust accounts, their actions can cause the trust to be seen as a “sham”. The consequences can be severe to the (nominee) directors and to the client.