What is a figurehead?

The concept of front man refers to a person who takes responsibility or assumes the ownership of a business or contract that actually belongs to another individual. In this way, he lends his identity, providing his name, bank accounts or other possessions in order to conceal another person. The figurehead is also known as the straw man.

The definition of front man must also include the fact that he is a person who will assume the responsibilities of the person he is impersonating, since in reality, the person who will appear in the contracts, writings and business procedures will be the front man himself. You will also have to answer in court when it comes to an illegal business or contract.

What is the front man of a company?

The law understands that a figurehead is a representative without representation. This means that you act on your own behalf, even if you transfer the business or assets to the principal later. It is lawful when the transfer is made through legal channels such as purchase-sale contracts or public documents.

At the moment the figure of the front man is closely linked to illicit activities, mainly as a result of businessmen and political positions who do not have the necessary conditions to do business and who resort to these straw men to develop their financial activities.

Consequences of being a front man

Thanks to the front man, what the royal administrator seeks is to reduce the risk of being captured by the authorities and bodies such as the tax agency. Through this practice, the represented individual can benefit from a number of advantages by avoiding legal obligations. In any case, when the front man carries out illegal activities he would be committing a crime and would have the obligation to respond to the law.

The utility of the front men acquires great relevance when the real businessman has problems managing a company, signing contracts, or cannot collect property in your name.

The front man will have a big problem when he gets involved in illegal business, exposing himself to the consequent penalties determined by the courts. This is what happens when looking to evade taxes.

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