Legal Definitions - stramineus homo

The term stramineus homo is a Latin phrase meaning "man of straw." In legal contexts, it refers to an individual or entity that acts as a mere front, figurehead, or nominal party for another person or organization. The true party of interest remains hidden behind the "stramineus homo," often to conceal their identity, avoid legal liabilities, bypass regulations, or achieve some other strategic advantage.

Essentially, a stramineus homo is someone who appears to be the principal actor but is actually controlled by or acting on behalf of another, who is the real party in interest.

• Example 1: Real Estate Transaction

  A prominent developer wants to acquire several properties in a specific neighborhood for a large-scale project, but fears that if their identity is known, property owners will inflate prices. To avoid this, the developer instructs a trusted employee to purchase the properties in the employee's name, with the understanding that ownership will be transferred to the developer once all acquisitions are complete. In this scenario, the employee acts as a stramineus homo, serving as a front to conceal the true buyer's identity and intentions.

• Example 2: Business Ownership and Liability

  A business owner has a history of financial difficulties and wants to start a new venture. Knowing that their past record might make it difficult to secure loans or contracts, they persuade a relative with a clean financial history to register the new company in the relative's name and serve as the nominal director. The original business owner secretly provides all the capital and makes all operational decisions. Here, the relative is the stramineus homo, shielding the true owner from potential scrutiny and liability.

• Example 3: Avoiding Regulatory Scrutiny

  A company operating in a highly regulated industry wants to expand into a new market but is concerned about potential anti-monopoly investigations if they acquire a competitor directly. Instead, they arrange for a seemingly independent investment firm, which they secretly control, to purchase the competitor. The investment firm then operates the acquired company under the direction of the original company. The investment firm, in this arrangement, functions as a stramineus homo to obscure the true acquiring entity and avoid regulatory challenges.