A limited liability company with fewer shareholders or a smaller scale may not have a board of directors. The board of directors is an organization composed of directors, which is in charge of the company's affairs internally and represents the company's business decision-making and business execution externally. The company has a board of directors, which is elected by the shareholders' meeting.
Article 50 of the Company Law of People's Republic of China (PRC) stipulates that a limited liability company with fewer shareholders or a smaller scale may have an executive director instead of a board of directors. The executive director may concurrently serve as the company manager. The functions and powers of the executive director shall be stipulated in the articles of association.
The difference between a limited liability company and a joint stock limited company is as follows:
1. Houses are built in different ways. A limited company cannot be established by offering, but a joint-stock company can be established by offering;
2. The number of shareholders is different. A limited company may have one shareholder, and a limited company shall have at least two shareholders;
3. The company structure is different. A limited company may not have a board of directors, and a joint-stock company must have a board of directors;
4. Equity transfer is different. There is no restriction on the transfer between shareholders of a limited company, but if it is transferred to someone other than shareholders, other shareholders have the priority to be transferred under the same conditions; There are no restrictions on the transfer of shares by joint-stock companies;
5. The voting methods of the shareholders' meeting are different. Limited company is based on all shares, with more than half of some matters and more than two thirds of special matters; The number of shares held by the shareholders attending the meeting shall prevail. The number of events exceeds half of the shares held by the participants, and the number of special events exceeds two thirds of the shares held by the participants.
To sum up, a limited liability company with few shareholders or a small scale may not have a board of directors.
Legal basis:
Article 50 of the Company Law of People's Republic of China (PRC)
A limited liability company with fewer shareholders or a smaller scale may have an executive director instead of a board of directors. The executive director may concurrently serve as the company manager. The functions and powers of the executive director shall be stipulated in the articles of association.