Must a limited liability company have an executive director?

Legal analysis: not necessarily. Paragraph 1 of Article 44 of the Company Law of People's Republic of China (PRC) stipulates that a limited liability company shall have a board of directors with 3 to 13 members. However, except as otherwise provided in Article 5 1 of this Law, Article 50 1 stipulates that a limited liability company with a small number of shareholders or a small scale may have 1 executive directors without a board of directors. The executive director may concurrently serve as the company manager. Paragraph 1 of Article 5 1 stipulates that a limited liability company shall set up a board of supervisors with at least three members. A limited liability company with a small number of shareholders or a small scale may have 1 to two supervisors without a board of supervisors.

Legal basis: People's Republic of China (PRC) Company Law.

Article 44 A limited liability company shall have a board of directors with three to thirteen members, except as otherwise provided in Article 50 of this Law.

For a limited liability company established by two or more state-owned enterprises or other state-owned investors, the board of directors of the limited liability company shall have representatives of the employees of the company. The employee representatives in the board of directors are elected by the employees of the company through employee congresses, employee congresses or other forms of democratic elections.

The board of directors shall have a chairman and may have a vice-chairman. The method for the formation of the chairman and vice chairman shall be stipulated in the articles of association.

Article 45 The term of office of directors shall be stipulated in the articles of association, but each term shall not exceed three years. Upon expiration of the term of office, directors may be re-elected.

Where a director fails to be re-elected in time upon the expiration of his term of office, or a director resigns during his term of office, resulting in a quorum of board members, the original director shall still perform his duties as a director in accordance with laws, administrative regulations and the Articles of Association before the re-elected director takes office.