A shadow director is someone who is not a named director but who
directs or controls the company. It is important to identify any
such person as the liquidator can take the same action against this
person as can be taken against the named directors.
It should be remembered that acting as a shadow director is not an offence in itself (unless the person is an undischarged bankrupt or disqualified from being a director INS44147). But the existence of a shadow director is a risk indicator. It raises the suspicion that the shadow director is attempting to conceal something by managing the company but not being listed as one of its directors.