Shareholders according to the type of company
There are several types of companies
that can be incorporated in Hong Kong and the minimum and maximum number of shareholders
is established as per the company type. A Hong Kong private company limited by shares will require a minimum of one shareholder but no more than 50 such members. When two or more individuals hold common shares in a company, they are regarded as a single shareholder.
A shareholder in Hong Kong can be an individual or another company. There are no restrictions as to the nationality or domicile of these company members and shareholder’s meetings can take place anywhere. The only condition for a shareholder in Hong Kong is to be over the age of 18.
Our Hong Kong lawyers
can help you with information about the qualifications, rights and obligations of a shareholder for a Hong Kong company
A shareholder’s rights and obligations
A company shareholder
must disclose his or her name in order to be included in the Companies Registry, along with other identification details like his or her address. Shareholders and directors can maintain their anonymity by using a nominee shareholders or directors service. Shareholders in Hong Kong
are entitled to their dividend payment of the company when profits exist. Also, if the company is liquidated
, they are entitled to a part of the surplus of assets (if any) after the company creditors have been paid off.
The duties of a shareholder in Hong Kong concern their personal liability (if applicable for the type of company) to the extent of their investments in the company and the obligation to pay in full their shares in a company. For detailed information about liability and legal rights, our lawyers in Hong Kong can answer your questions.
Shareholders and directors in Hong Kong
Although the company is generally controlled by its directors, the shareholders also hold certain powers and have control over the amendments made to the articles of association, the re-election or removal of directors and must be present in a general shareholder’s meeting in certain cases like changes to the memorandum and articles of association, increasing or reducing the company’s capital, company liquidation and others.