Q: What are the differences between shareholders and directors?

A: Shareholders and directors are different in comparison in the following rights and obligations: Shareholders' rights and obligations are as follows:

*To take part in meetings of shareholders, and entitled to voting power in proportion of shareholding

*To understand the operating and financial conditions of the company

*To elect and to be elected as members of Board of Directors

*To obtain dividends

*To pre-empt shares transferred by other shareholders

*To subscribe in priority the shares newly issued by the company

*To have distribution from the remaining property after liquidation of the company

*To consider and pass the annual auditors' report in meetings of shareholders

*To employ or dismiss directors in meetings of shareholders and determine directors' remuneration

Directors' rights and obligations are as follows:

*To take charge of ordinary operations and decisions of the company

*To keep accounting book and business record

*To take charge of bank account management

*To secure the loan borrowed with the company's property

*To propose profits distribution scheme

*To propose registered capital increase scheme

*To convene meetings of shareholders

*To execute resolutions passed at meetings of shareholders

Q: Can the shareholder and director be the same person?

A: Yes. The shareholder and director of the company can be the same person.

Q: How many shareholders and directors shall a limited company have at the least?

A: A limited company shall have at least one shareholder and director, which can be the same person.

Q: Can non-Hong Kong residents become shareholders or directors of Hong Kong Limited Company?

A: Chinese residents or overseas persons who are 18 years old or above and holding passports or ID cards can become shareholders or directors of Hong Kong limited company.

Q: Is it necessary for non-Hong Kong residents to hold a passport in order to be the shareholders or directors of limited company?

A: No. However, shareholders and directors of the company shall hold valid passports or travel permits and ID cards when they want to open a bank account in Hong Kong.

Q: Can a limited company act as the shareholder or director of another limited company?

A: Yes.

Q: Can others access the information of directors and shareholders of a company?

A: Yes. All information of a limited company registered in Hong Kong, including names, addresses and shareholding percentage of shareholders; and names, ID card numbers or passport numbers and addresses of directors, shall be accessible by the public. If the information of shareholders and directors want to be kept confidentially, Conpak can provide services of acting as nominee shareholder and nominee director.