Many business owners like to open companies in Hong Kong because the company's decisions are fair and environmentally friendly. Business rules that are not too strict include changing personnel for various company positions. One of the most important personnel changes in a company is the position of director because this position holds important decisions in carrying out special business operations on behalf of the company. We must study the legal change of directors in Hong Kong, because it can be applied to all Hong Kong companies.
Hong Kong allows local and foreign directors and shareholders to leave or assume their position in a company. Companies in Hong Kong are allowed to change their structure, such as changing personnel such as directors or company secretaries whenever they need or according to their desires. Before changing a director in a Hong Kong company, there are several things that must be done. This article will discuss what is needed to change directors in Hong Kong companies.
Can a director be replaced?
So far we know that a director is a high position in a company and cannot be replaced. But in Hong Kong, directors can be replaced and that is legal in every Hong Kong company, as long as the requirements are met. You can look for assistance with this task by taking care of proper steps and documents needed for new directors. If everything is ready, the process will only take 1 or 2 days.
Every Hong Kong company must prepare at least one person to be the company director and one person to be the company secretary. It doesn't matter if a company has many directors, long as none of them have the double position of company secretary.
Reasons why directors can be replaced
There are many reasons why a company must change its director. What we know is that every Hong Kong company must have at least one active director for arranging for incorporation. Changing a company's board of directors can occur as a result of necessity or voluntarily. Reasons why a company must replace its directors are resignation, death, removal, or other circumstances. All Hong Kong companies must act within the company incorporation laws for legal change of directors.
For example, if a director resigns voluntarily, it must be with the approval of the other directors, and the company can ask the director to resign in the correct way to avoid being sacked. Every director who wants to resign must follow the terms of their contract, until they agree to resign and the company's register must quickly make the change.
The second example is the removal of directors through different means. If there are directors who do not meet the legal requirements in Hong Kong, they can be removed from their position.
The disqualification can be done instantly when they do not meet any of the compliance requirements. the company's shareholders can pass a resolution to remove the director as long as it does not violate any contractual agreement and legislative rule. Or the final example is a court order that can help change company directors.
What is the procedure to change the director?
There are two ways to change directors, namely by adding a director or removing a director. To add a director, some paperwork needs to be prepared. The form of a resolution is required to be signed by all the directors with the following information should be included such as the effective date of the change, full name, permanent addresses, and signed resolution.
Highlight the situation during the legal change of directors, because we must be clear that there is no conflict between the directors and company owners so that the process runs smoothly. After the resolution is received, the notice of change of director form must be submitted within 15 days until the resolution becomes effective.
All complete documents will be processed within 2 working days at the Hong Kong companies registry. The exact time to change the new director can be done during the next annual return.
What are the requirements to become a company director in Hong Kong?
The Hong Kong government has regulations that for every company there must be at least one director and it must be a natural person. That person may not serve as the company secretary. Directors can be local citizens or foreigners. The requirements are: the candidate must be at least 18 years old, citizen or foreigner, must have a valid passport, there is no limitation to the number of possible directors and at least one natural person, can be a corporate director or individual.
Why a Notary Is Essential for Every Single Business
Before legal change of directors, directors must understand specific statutory duties and responsibilities. The director must act in the best interests of the company, responsible for filing the profit tax returns and employees' returns, ensures that the company makes relevant filings and complies with all statutory laws, maintains accurate company records and carries out full accounting, monitors the company progress and achieve all set-out goals, making strategies and priorities on behalf of the company.
Some of the documents required for a Hong Kong company's change of director are: Letter of consent of new director, a signed director's resolution, resignation letter if necessary, change of director date, death certificate if the previous director died, full name of director which is the same as in their passport, permanent address of new director, identity card or information page of international passport.
Who can help with Legal change of directors in Hong Kong?
SMEBrother is the right place to help you with structural changes in the company. We will provide you with company incorporation services, one of which is changing directors for any reason. SMEBrother can handle all documentation and company registrations, to ensure that your company's needs comply with Hong Kong laws and we do it as quickly as possible.
Our experience is sufficient to handle your change of director processes and other company needs in accordance with Hong Kong law. If you want to learn more about the services we can provide for your business, please contact us.
