In a Hong Kong Company Limited by Guarantee, the directors have a crucial role in the management and decision-making process of the company. They share similar legal duties, responsibilities, and liabilities as directors in other types of organizations. Their involvement in the company stems from its objectives, rather than from a desire for financial gain.
There are some of their key responsibilities:
- Governing the company: The directors oversee the company’s affairs, ensuring compliance with articles of association, laws, regulations, and governance practices.
- Setting company policies: The directors are responsible for setting the company’s policies, strategies and objectives. They must ensure these are aligned with the company’s mission and vision.
- Managing company operations: The directors manage the company’s operations to ensure efficiency and effectiveness. That includes overseeing its financial performance, managing risks, and monitoring compliance with laws and regulations.
- Appointing and supervising senior executives: The directors appoint and supervise senior executives such as the CEO and other management team members. They must ensure that these individuals are competent and capable of carrying out their roles effectively.
- Representing the company: The directors represent the company to external stakeholders such as shareholders, regulators, and other stakeholders to ensure that the company’s interests are protected and its reputation is maintained.