Because many corporate governance solutions are not

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Because many corporate governance solutions are not found in the law, academics suggest three ways to better govern a company: (i) introducing non-executive directors to monitor the internal directors, (ii) setting up audit and remuneration committees to increase the transparency of the company, and monitoring directors’ remuneration, and (iii) splitting the posts of Company Chairman and the Chief Executive Officer, to be headed by two individuals, to prevent too much authority being given to one person. 从从从从从从从从从从从 ( 从从从从从 ) 从从从从 从从从从从 1. 从从从从从从从从从从从从从从 从从从从从从从从从从从从从从从从 2. 从从从 从从 3. 从从从从从从从 从从从从 (从从: 从从从从从从) Differences between an executive director (ED) and a non-executive director (NED) ED (same legal liability) NED 1. Attends his office daily No (may be retired or works elsewhere) 2. Receives a salary No (may receive reimbursement of actual expenses) 3. Is an employee No 3. 香香香香 Business Vehicles : 从从从从从从从从 entities to conduct businesses in HK (从从从从从从从从从从从从从从从从从从从从从从从从从从从 search for registered particulars of sole proprietorships and partnerships at the Business Registration Office of the Inland Revenue Dept) 3
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a.从从* Sole Proprietor (从从从从从, 从从从从从从 公公公 can audit by itself) Proprietor owns the company 100%. Bears total unlimited personal liability. The business may be called a “company” but it is NOT a separate legal person.从从从从从从从从从从 从从从从从从从从从从从从从从从从从从从从从从从从从从从 b.从从* Partnership (从从从从从, 从从从从从从 公公公 can audit by itself) Partners have joint and several unlimited personal liability 从从从从从 公公公公公公公公 The business may be called a “company” but it is NOT a separate legal person.从从从从从 从从从从从从从从从从从从从 Only law firms (solicitors and barristers) are forbidden to Form limited companies in HK 从从从从从从从从从从从从从从从从从从从从从从 c.从从从从 Limited Company (从从从从从从从从从 can search at the Companies Registry www.icris.cr.gov.hk) Note: (从从从从从 Companies Registry 从从从从从从从 公公 < 公公 公公 > 从从从从, 从从从从从从从从从从从从从从从从从从从从从从从从从从从从 从从从从从The Companies Registry contains registration particulars of limited companies only, pursuant to the Companies Ordinance, but not those of sole proprietorships and partnerships. These two business vehicles may be searched at the Business Registration Office of the Inland Revenue Department. (从从从从从 公公 从 CPA 公公 need independent audit by outside certified public accountants CPA). A limited company is a separate legal person. The company’s liability is separate from those of shareholders’ personal liabilities. eg. ABC Ltd signs a contract with you to order goods. If ABC Ltd does not pay up, you can only sue ABC Ltd. Only the company is liable to pay you.
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