There are two categories of chosen businesses which are Corporation Limited by Shares and Company Limited By Guarantee. The company directors identity can either be an individual or a firm for the Hong Kong business but more than one director of identity must be an individual. There is however no absolute minimum number of maximum directors allowed. This also has implications for the shareholders. For instance, a firm with three or more directors will not be able to increase the number of shareholders.
Of these two categories of directors in Hong Kong, there is only one category which falls under the hong kong limited company registration law. This is the limited liability company. The other type of directorships are more akin to public companies. These are usually listed on the stock markets and traded on the secondary market.
There are Hong Kong company directors who are appointed by the government in the form of orders of the Secretary of State. In this case, the Secretary of State is acting on behalf of the government. There are also some instances where the company is formed by an individual or individuals acting under their own names. In such cases, the individual or individuals have been appointed by a Hong Kong court.
There are two basic Hong Kong duties which must be fulfilled by any company directors. The first duty is to exercise corporate authority. In this regard, the company must have the capacity to act in accordance with the corporate laws of Hong Kong. This is the most important duty of all hong directors. There is also a duty to comply with the regulations of the Hong Kong board of management.
Most companies also need to undertake auditing activities. This is to ensure that the company complies with the requirements of the law and has the necessary internal controls. The auditor’s reports are also the basis for the company’s management’s compliance and management of its risks. Auditors also have the responsibility of providing periodic review to the directors.
The Hong Kong company directors would also have to fulfil the duties of the directors of a public company. This means that they must discharge their duties in a timely manner. A company director can choose to be neutral if he does not have any personal stake in any particular transaction. His decisions are subject to the direction of the Board of Directors. He cannot act in an unreasoning or improper manner or breach of the duties imposed upon him.