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Under the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), there must be at least one (1) individual or body corporate shareholder. For individual shareholder, he/she can be a Hong Kong resident or a non-Hong Kong resident aged over 18.
A shareholder is the person/entity owns the company but does not necessarily run the company’s business like the director. The shareholder has a financial stake in the company, the amount of share capital he/she contributes and his/her liability is also limited to the amount of share capital invested. Usually, the shareholder receives dividend in return for his/her investment. As the owner of the company, a shareholder can:
1. Appoint directors. 2. Access the company’s records. 3. Vote in the annual general meeting or extraordinary general meeting in regard to the proposed agenda 4. Pass resolution to administer the company’s affairs. 5. Be informed on the affairs of the company managed by the directors. 6. Receive dividends. 7. Receive proceeds of the company when the company closes down.
The above is not an exhaustive list of rights of a shareholder.
As pursuance to Companies (Amendment) Ordinance 2018, there is an additional requirements on the keeping of significant controllers registers with effect from 1 March 2018. All companies incorporated in Hong Kong (except listed companies) are required to identify a person/persons who has/have significant control over the company and maintain a significant controllers register which will be accessible by law enforcement officers upon demand. Each company must also designate at least one person as its representative to provide assistance relating to the significant controllers register of the company to law enforcement officers. Usually, the beneficial owner or shareholder (if the shareholder is the same as a beneficial owner) is the significant controller of the company.
The shareholder(s) or its real owner(s) is/are therefore has/have to make sure proper action is taken to comply with the regulation without delay.
Need Assistance If you require assistance in arranging the Significant Controllers Register, please do not hesitate to contact us at info@intershores.hk or by whasapp at (852) 6499 4686.
Whatsapp : (852) 6499 4686 Phone : (852) 2186 6936 Email : info@intershores.hk
Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice. |
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