China Limited Liability Company’s Organ of Power - the Board of Shareholders
The organ of power of an LLC is the board of shareholders, which is a non-permanent institution made up of all shareholders to express the company's operation plan, which is a necessary institution for every company. According to China Law, all shareholders must uphold the interests of the company or other shareholders, and are not permitted to practice any form of prejudice or abuse the shareholder’s rights.
The Functions and Powers of the Shareholders' Committee
China's company law stipulates that the functions of the shareholders after a China Limited Liability company registration shall include:
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Determine the company's operating principles and investment plans.
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Elect and replace directors and decide on the remuneration of the directors.
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Elect and replace the supervisors appointed by the shareholders' representatives to decide on the remuneration of the supervisors.
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Consider and approve the report of the board of directors.
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Examination and approval of reports of supervisors or supervisors.
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Consider and approve the company's annual financial budget plan and decision plan.
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Consider and approve the company's profit distribution plan and make up the loss plan.
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Reach a resolution on increasing or reducing the registered capital of the company.
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Decision-making on the issuance of corporate bonds.
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Make declarations on the transfer of capital contribution to the shareholders other than the shareholders.
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Make decisions on the merger, division, change of company form, dissolution and liquidation of the company.
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Amending the articles of association.
China Limited Liability Company's Executive Body - Board of Directors / Executive Director
The executive body of a limited liability company is the board of directors or the executive director. It is generated by the shareholder election to perform the internal implementation of the company business and act as the permanent institution. Business China goes the extra mile when it comes to ensuring that the foreign entrepreneurs that go through the China Limited Liability company registration process are fully aware of all the prerequisites and conditions of setting up a LLC in China.
Authority of the Board of Directors
China's company law stipulates that the functions and powers of the board of directors of limited liability companies include:
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Convene shareholders' meeting and report to the shareholders' committee.
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Come to a resolution of the shareholders' meeting.
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Determine the company's business plan and investment plan.
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Formulate the company's annual financial budget plan and decision plan.
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Frame the company's profit distribution plan and the compensation and loss plan.
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Plan the company’sincrease or reduction of registered capital.
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Formulate plans for a merger, division, change of company form and dissolution of contracts.
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Determine the setting of internal management of the company.
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Appoint or dismiss the manager of the company (general manager), appoint or dismiss the company's deputy manager and finance director according to the nomination of the manager, and decide on his remuneration.
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Formulate the primary management system of the company.
The Functions and Powers of the Board of Supervisors or Supervisors
According to Chinese law, after the process of a China Limited Liability company registration all functions and powers exercised by the board of supervisors or supervisors shall include:
I.
Checking the company's finance.
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The supervision of all actions of the directors and managers who violate laws, regulations or articles of association when they perform the duties of the company.
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If it is found that the behavior of the director and the manager damages the interests of the company, the directors and the manager shall be required to correct it.
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Carry out temporary shareholder meetings.
V.
All other functions and powers prescribed by the articles of association.
