Hong Kong Company Establishments – Appointing the Managing Director
After deciding to open a new business venture, the next step that must be taken is to look for a suitable location. It will be a crucial decision that will significantly impact the firm’s business performance firm. Once the business location is decided upon, the next step is to look for a suitable business firm that offers the services that are required by the business. Thus, it is essential to consider some of these benefits of company formation in Hong Kong.
The Managing Director for the Hong Kong company establishment, Once a decision is taken to open a new business venture, the next step is to appoint a managing director for the firm. In simple words, the managing director is the head of the firm while also being the employee of that company at the same time. Thus, it will be advisable to appoint the best managing director who has the necessary experience and skills for running the firm.
Opening a company in Hong Kong is not only limited to just one party. Two parties are included in the provision of company formation in Hong Kong. First, natural persons do not hold any shares or voting right to form a Hong Kong company. Second, companies incorporated under China’s laws have appointed local office buildings as their place of business.
Role of a Registered Office. Besides managing a company’s affairs in Hong Kong, the principal part of a corporate body in Hong Kong procedures is registering its offices., registered offices must be situated in Hong Kong. The Registered Office will serve as the authority for all matters concerning the formation and further development of a Hong Kong company. All the directors of a company have to be associated with the Registered Office.
Removal and Appointment of a New Director. If ever a director in a company becomes incapacitated or incompetent, their appointment as a director is terminated. If a director is removable, then most of that board members shall choose his or her replacement. The procedure of removing a director from office is a meeting of all the directors and members of that body at a meeting called the Annual General Meeting or the shareholders’ Annual Meeting. Once the matter is reached, the officers nominated for the said task are the alternate director or no alternate director, then the current director.
Appointment of a Managing Director. If a company has more than one director, it must be done differently from a single director. Here, too, the majority vote is required for the appointment of a managing director.
Appointment of a Reserve Director. Another method of managing a company in Hong Kong is to appoint a Reserve Director. A Reserve Director is a non-executive director, and the power of appointment is given to the individual (the appointed one) alone. The Reserve Directors’ Regulations provides the basic rules to be followed in selecting a Reserve Director, including the quorum, number of days of office, and annual review. Monthly reports concerning Reserve Departments’ activities are also to be submitted to a private company’s Annual General Meeting.
Hong Kong company establishment