What is the requirements of directors?
The Companies Ordinance (Cap. 622) requires that every private company must appoint at least one individual director. The directors must be a person who have attained the age of 18 years. A non-Hong Kong resident can be appointed as a director of the company.
What are the differences between Shareholders and Directors?
A: Difference as below:
Shareholders' rights and obligations are as follows:
- Shareholders are the company's investor
- To take part in meetings of shareholders, and entitled to voting power in proportion of shareholding
- To elect and to be elected as members of Board of Directors
- Have rights to receive dividends
- To pre-empt shares transferred by other shareholders
- To subscribe in priority the shares newly issued by the company
- To have distribution from the remaining property after liquidation of the company
- To consider and pass the annual auditors' report in meetings of shareholders
Directors' rights and obligations are as follows:
- To take charge of ordinary operations and decisions of the company
- To keep accounting book and business record
- To take charge of bank account management
- To propose profits distribution scheme
- To propose registered capital increase scheme
- To execute resolutions passed at meetings of shareholders
Q: Can the shareholder and director be the same person?
A: Yes. The shareholder and director of the company can be the same person.
Q: How many shareholders and directors shall a limited company have at the least?
A: A limited company shall have at least one shareholder and director, which can be the same person.
Q: Can non-Hong Kong residents become shareholders or directors of Hong Kong Limited Company?
A: Hong Kong residents or overseas individuals who are 18 years old or above and holding valid passports or ID cards can be shareholders or directors of a Hong Kong limited company.
Q: Is it necessary for non-Hong Kong residents to hold a passport in order to be the shareholders or directors of limited company?
A: No.
Q: Can a limited company act as the shareholder or director of another limited company?
A: Yes.
Q: Can others access the information of directors and shareholders of a company?
A: Yes. All information of a limited company registered in Hong Kong, including names, addresses and shareholding percentage of shareholders; and names, ID card numbers or passport numbers and addresses of directors, shall be accessible by the public.
