In Hong Kong, shareholders generally do not have fiduciary duties to the company or to other shareholders as they do in some other jurisdictions, like the United States. Fiduciary duties typically entail a legal obligation to act in the best interests of another party, often to the detriment of one’s own interests, and are more commonly associated with company directors and officers rather than shareholders.
In Hong Kong, shareholders are considered owners of the company, and their primary role is to invest capital and exercise their voting rights to influence the company’s direction and policies. While shareholders are not legally bound by fiduciary duties towards the company or other shareholders, they are expected to act in accordance with the law, ethical principles, and good corporate governance practices.
However, it’s essential to note that shareholders in Hong Kong have certain rights and responsibilities, including:
- Voting Rights: Shareholders have the right to vote at general meetings to elect directors, approve major corporate actions, and make important decisions affecting the company.
- Responsibility for their Own Interests: Shareholders are generally expected to act in their own self-interest when it comes to protecting their investments in the company.
- Legal Remedies: Shareholders have legal remedies available if they believe their rights have been violated or if they believe the company’s actions are unfairly prejudicial to their interests.
While shareholders in Hong Kong do not have fiduciary duties akin to directors and officers, they are still an integral part of the corporate governance framework. They play a significant role in holding the company’s management accountable, ensuring transparency, and safeguarding their investments within the confines of applicable laws and regulations. It’s advisable for shareholders to seek legal counsel or financial advice when navigating complex corporate matters to protect their interests effectively.