What is and How to change a Joint Venture's Directors & Supervisors?

What is and How to change a Joint Venture's Directors & Supervisors

 
1. What is a Joint Venture's Board of Directors?
Board of Directors is the decision-making organization of a Joint Venture or company. President or Member of the Board of Directors is appointed, sometimes elected, by one one of the shareholders or the board of shareholders.
Usually, a Joint Venture is invested by both domestic and foreign shareholders, in such case, a Board of Directors must be formed. A Board of Directors consists of at least 3 individuals, one of which should be the president, some other member can be vice president, and the rest just be the Member of the Board of Directors. Anyone from the Board of Directors can be the legal representative of the Joint Venture, or appoint some other individual as the legal representative.

2. Rights and Obligations of Board of Directors:
Member of the Board of Directors is responsible for daily operation and management of the Joint Venture company. Director is appointed by one of the shareholders or board of shareholders, so director should act in capacity of the power vested by the shareholder or board of shareholders.
Director is responsible to one of the shareholders or board of shareholders, so director should not do anything that harms the interests of the Joint Venture company. Director should abide by the laws and regulations of China and the articles of the Joint Venture.
 
3. What is a Joint Venture's Supervisor/Board of Supervisors?
Supervisor or Board of Supervisors is the supervising organization of a Joint Venture or company. Supervisor or Board of Supervisors is appointed, sometimes elected, by one of the shareholders or board of shareholders.
Usually, one to two Supervisor is adequate. However, if a Joint Venture was invested by multiple foreign shareholders, and the Joint Venture set up a Board of Directors, a Board of Supervisors is necessary to be set up. A Board of Supervisors should consist of at least 3 individuals, one of which could be the President of Board of Supervisors, some other member can be Vice President of Board of Supervisors, and the rest just be the Member of the Board of Supervisors. A supervisor mustn’t be the legal representative or director or manager of any kind.
 
4. Rights and Obligations of Supervisor/Board of Supervisors:
Since supervisor does the supervising job. A supervisor can:
(1). Check Joint Venture company finance;
(2). Supervise director’s business act and report to the shareholder or board of shareholders;
(3). Correct director’s mistakes;
(4). Put forward proposals to one of the shareholders or board of shareholders to dismiss the directors who violated the laws and regulations and articles.
 
Supervisor is responsible to one of the shareholders or board of shareholders, so supervisor should not do anything that harms the interests of the Joint Venture company. Supervisor should abide by the laws and regulations of China and the articles of the Joint Venture.
 
5. How to appoint a Joint Venture's Directors & Supervisors?
Since Directors & Supervisors are generally appointed, sometimes elected, by the one of the shareholders or board of shareholders. If the shareholder is an individual, can be a director or supervisor or appoint some other person to be director or supervisor.
 
6. How to change a Joint Venture's Directors & Supervisors?
To change a Joint Venture's Directors & Supervisors, one of the shareholders or the board of shareholders should pass a resolution and find a qualified agency such as WOFEChina.com to submit legal documents to relevant departments.
 
For detailed information, please contact our consultant: leo@wofechina.com.

WOFEChina.com has successfully helped investors from more than 50 countries (regions) all over the world registered Wholly Owned Foreign Enterprises (WOFE), Joint Ventures (JV), Shanghai Representative Offices(RO), and provide one-stop business solution, including Trademark Registration, Bookkeeping, etc. We have a very skilled consultant team, a set of efficient operation system. We provide high-quality customized services with reasonable price and accurate information, that’s what makes us different.

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