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6 Things You Need to Know About Appointing of Directors in Hong Kong
September 18, 2020 by Mark Wong
The role of the Directors in Hong Kong is to determine the strategy and supervise the operations of the company.
The initial Directors of your company are normally appointed at the time of incorporation.
However, you may sometimes need to appoint a new director for your Hong Kong company later on.
This may be the case because you want to increase the size of the board of directors, or because an existing director has resigned.
The appointment of a new Director of a Hong Kong company is fairly simple.
Every limited liability company in Hong Kong must have at least 1 Director who is a human being (as opposed to a company).
The other directors (if any) may include individuals or companies.
You should keep in mind that:
The shareholders of a Hong Kong company have the power to appoint the Directors. The shareholders also decide on the number of Directors.
If your company has more than one shareholder, the detailed rules for the appointment of Directors will usually be detailed in the Articles of Association and the Shareholders Agreement (if any).
The Board of Directors may also appoint new Directors, usually to fill a vacancy.
The main documents required for the appointment of a new director are as follows:
These documents will include various information about the newly appointed Director, including:
The process for appointing the director of a HK company is fairly simple:
It is absolutely crucial to closely follow all procedures and keep all records, especially if you intend to sell your business in the future.
It is also important to provide the newly appointed Director with a copy of the Companies Registry “Guide to Directors’ Duties”.
The appointment of a new director only takes a few days provided that your company’s past records are in order.
The filing process with the HK Companies Registry normally takes around 2 days.
While not a legal requirement, we strongly advise you to inform your bank upon any appointment of a new director for your Hong Kong company.
This will allow your bank to proactively update your company’s KYC.
Not informing your bank and waiting until it finds out by itself is a bad idea.
It may sometimes result in your account being temporarily frozen.
Ready to take your business into HK? Air Corporate will help you appoint your directors legally and efficiently.
Focus on your business, we take care of the rest.
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