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Company Formation Hong Kong



Company Management in Hong Kong

Updated on Thursday 26th March 2020

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Company-Management-in-Hong-KongCorporate governance in Hong Kong

According to the Hong Kong Institute of Directors (HKID), corporate governance is the main guideline for company management. Good corporate governance is considered to help the management of a Hong Kong company in achieving its goals and it also contributes to the success of a company. According to the HKID it is in the best interest of company managers to adopt a corporate governance code that will help them improve their business operations. Hong Kong is one of the cities in which corporate governance is highly regarded due to the influx of foreign companies that have opened subsidiaries or branch offices that have implemented the rules of company management of the parent enterprise.

The board of directors in Hong Kong companies

A company is controlled through a board of directors in Hong Kong. The main roles of the board of directors are to increase the shareholders’ incomes, to lead the company and makes sure all financial and human resources are available for the achievement of all goals. Among the responsibilities of the board of directors of companies in Hong Kong are to establish and approve the budget for the projects the enterprise is involved in, to measure the performance of the company’s staff, to approving the acquisitions, assessing all financial risks, approving the naming of the company’s managers and secretary. The board of directors has the possibility to assemble an executive management committee that will be in charge with assessing long-term projections and based on that make recommendations to the company’s management. A company’s board of directors is comprised of a chairman, executive and non-executive directors.

The company secretary in Hong Kong

The secretary has the role of supporting a company’s chairman in a Hong Kong enterprise. The secretary will help in promoting the best corporate governance practice and will ease the functioning of the management whenever required. The company secretary will report to the chairman but also to the management committee. The main responsibilities of the company’s secretary is to convey all important information delivered by the chairman to the board, executive and non-executive directors, will also make sure all directors will comply with the company policies, but also to advise the board on governance issues. The company secretary must also facilitate the communication between a company’s management and its shareholders.

Our consultants in company formation in Hong Kong will provide detailed information about corporate governance regulations. You can also contact us for company registration services or if you are interested in purchasing a Hong Kong shelf company.



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