What is a board of directors?

Legal analysis: the board of directors can be regarded as the executive organ of the power of the joint-stock company and the legal representative of the enterprise. Sometimes it is called management committee and executive committee. The board of directors consists of two or three or more directors. Other matters may be decided by the board of directors, except for the powers that should be exercised by the shareholders' (general) meeting according to the laws and articles of association. The board of directors of the company is the decision-making body of the company, and the board of directors is responsible to shareholders (shareholders' meeting).

Legal basis: Article 44 of the Company Law of People's Republic of China (PRC) establishes a board of directors with three to thirteen members; However, unless otherwise provided for in Article 50 of this Law. A limited liability company established by two or more state-owned enterprises or two or more other state-owned investors shall have employee representatives as directors, and other limited liability companies may have employee representatives as directors. 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.