Are directors paid in the company law?
Do directors get paid in the Company Law? As we all know, if you work in a company, you must get paid. This is stipulated in China's labor law. However, there is a special position in the company, which is the director. Directors and employees are different. The company law stipulates that directors have a certain salary, but the salary is not necessarily in the form of salary, but also in the form of equity. The form of directors' remuneration is not fixed, which can be wages, stock options and so on. However, in general, there are few forms of remuneration because it is easy to cause conflicts of interest and the remuneration paid to directors can be tax deductible. Mainly options and the like. According to the relevant provisions of Chapter VI of the Company Law of People's Republic of China (PRC), a director refers to a person who is democratically elected by the shareholders' (general) meeting or employees of the company and has the actual power and authority to manage the affairs of the company. They are the main force of the company's internal governance, managing the company's affairs internally and conducting economic activities on behalf of the company externally. Article 38 and Article 100 of the Company Law clearly stipulate that the remuneration of directors and supervisors shall be decided by the shareholders' meeting of the company. Article 38 The shareholders' meeting shall exercise the following functions and powers: (1) To decide on the company's business policy and investment plan; (2) Electing and replacing directors and supervisors who are not employee representatives, and deciding on the remuneration of directors and supervisors; (3) Examining and approving the report of the board of directors; (4) Examining and approving the reports of the board of supervisors or supervisors; (5) To examine and approve the annual financial budget plan and final accounts plan of the company; (VI) To examine and approve the company's profit distribution plan and loss recovery plan; (7) To make resolutions on the increase or decrease of the registered capital of the company; (8) To make resolutions on the issuance of corporate bonds. (9) To make resolutions on the merger, division, dissolution, liquidation or change of corporate form of the company; (10) Amending the Articles of Association. (eleven) other functions and powers stipulated in the articles of association. Where the shareholders unanimously agree to the matters listed in the preceding paragraph in writing, they may make a decision directly without convening a general meeting of shareholders, and all shareholders shall sign and seal the decision document. Article 150 Directors, supervisors and senior managers who violate laws, administrative regulations or the articles of association when performing their duties of the company and cause losses to the company shall be liable for compensation. Article 152 Where a director or senior manager is in any of the circumstances specified in Article 150 of this Law, shareholders of a limited liability company or shareholders of a joint stock limited company who individually or collectively hold more than one percent of the shares of the company for more than 180 consecutive days may request in writing the board of supervisors or supervisors of a limited liability company without a board of supervisors to bring a lawsuit to the people's court. Where the supervisor is under the circumstances specified in Article 150 of this Law, the above shareholders may request the board of directors or the executive director of a limited liability company without a board of directors in writing to bring a lawsuit to the people's court. The board of supervisors, the supervisors, the board of directors and the executive director of a limited liability company without a board of supervisors refuse to bring a lawsuit after receiving the written request from the shareholders specified in the preceding paragraph, or fail to bring a lawsuit within 30 days from the date of receiving the request, or the interests of the company will be irretrievably damaged if the lawsuit is not brought immediately in case of emergency. Shareholders specified in the preceding paragraph have the right to bring a lawsuit directly to the people's court in their own name for the benefit of the company. If others infringe upon the legitimate rights and interests of the company and cause losses to the company, the shareholders specified in the first paragraph of this article may bring a lawsuit to the people's court in accordance with the provisions of the preceding two paragraphs. The provisions of the Company Law on the remuneration of company directors are paid in our country, but there are many forms of wages, which can be fixed wages or irregular wages or equity. So we need to know a lot about directors' compensation. Directors also have many rules.