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Q&A on Organization Structure of Chinese Companies

Q&A on Organization Structure of Chinese Companies

Q:
Is it allowed to have no board of directors in a Chinese company?
A:
According to the Company Law of the PRC, limited liability companies and joint stock limited companies with smaller scale or fewer shareholders may have no board of directors and only appoint one director.

Q: Is there a limit on the number of members of the board of directors of a Chinese company?
A: According to the Company Law of the PRC, the board of directors must have at least three members.

Q:
Is it allowed to have no board of supervisors in a Chinese company?
A:
According to the Company Law of the PRC, limited liability companies and joint stock limited companies with smaller scale or fewer shareholders may have no board of supervisors and only appoint one supervisor.

Q:
Is it allowed to have no supervisor in a Chinese company?
A:
According to the Company Law of the PRC, limited liability companies with smaller scale or fewer shareholders may have no supervisor with the unanimous consent of all shareholders.

Q:
Is it a must for a Chinese company to appoint a legal representative?
A:
Yes. A Chinese company must appoint one legal representative. According to the Company Law of the PRC, a company’s legal representative shall be either a director or (general) manager who represents the company to execute corporate affairs.

Q:
Is it allowed to have no (general) manager in a Chinese company?
A:
According to the Company Law of the PRC, a limited liability company may have no manger, but a joint stock limited company must appoint one manager.

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