A designated director will mainly be nominated for confidentiality reasons. For instance, a designated director will be elected if you do not wish for your name to appear in a commercial contract or if you do not wish to sign all the forms to open a bank account. When a designated director is nominated, the customer and the nominated person will sign a service contract, which guarantees the customer that the nominated person will only be able to act or sign documents upon the customer's request. It also assures nominated persons that they have no responsibility.