Share transfer and nomination of new director for HK company

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  1. #11

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    Quote Originally Posted by pin:
    Can you pm me further for details.

    I can offer you advice, from the offshore side of things (but only as general guidance and not as legal advice).
    pm has been sent !

  2. #12

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    executor

    You cannot be the executor of your will. The executor's job starts only after your death.
    You cannot have 2 wills.The will dated last, before your death will prevail, and the other will becomes null & void.
    You can give the will to your lawyer or your banker for safe keeping .
    They should be instructed to advise your family, as soon as they learn about your death.
    Trusts are good, but are expensive to maintain. If your estate is large enough it may be worthwhile to consult a lawyer specializing in the trusts.




    Quote Originally Posted by LuisHK:
    The misunderstanding is mostly an english language problem from my side. The question is can I be sure the executor will be able to implement the decisions in the will referring to corporate entities in HK or other offshore locations in those juridictions, and will he be able to keep this totally out of my homecountry legal entities ?

    Hence shall I fill a will with a HK law firm as well as a Belize law firm to be sure ?

  3. #13

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    My understanding is that you can't simply say "I want my will and inheritance to be handled under Country X's laws and taxes". As I understand international law (or convention at least) the country where you are deemed domiciled at the time of your death is the one whose laws apply. Hence you need professional advice on how to minimise the tax and other issues under the laws of your country of domicile. This may well involve putting stuff in trusts which you don't control. But the advice will be different depending on where you are domiciled.

    And domicile is not something you can simply choose, it is a matter for determination in the courts if it is not obvious.


  4. #14

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    You have 2 issues here : ownership of the company and control of the company.

    In the event of your death (or disappearance for more than 7 years), your assets (i.e. shares) will go to your estate. The estate administrator will distribute the shares according to your will (if any) or at his bonafide discretion.

    For control of the company, you can always appoint a shadow director, who will step in once you're deceased or incapacitated/missing etc.


  5. #15

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    Thanks again for your replies ! Googled some information about "shadow director" and it seems it's only valid for HK Ltds which have only 1 director and 1 shareholder who are the same individual (and not a corporation ), plus under british law I understand that a shadow director does have day to day power. Is it the concept that applies when using nominee directors ? My agent offered the possibility to establish a reserve director but in HK according to him his name would appear publicly. We were about to establish a reserve director for the Belize company until their correspondant company in Belize apparently said this status doesn't exist under Belize business law.

    Starting to wonder actually wether better options would appear if I used nominee directors for the HK company, with instructions to transfer benefits of the real beneficiary in case of his death or disappearance.

    Any feedback on that issue ?


  6. #16

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    If I understand correctly , HK Company's shares are held by Belize company.
    In case of death of the director, you want the nominee director to transfer shares of the HK Co. to the beneficiary.
    So what happens to Belize Company? Will it be dissolved?

    Quote Originally Posted by LuisHK:
    Thanks again for your replies ! Googled some information about "shadow director" and it seems it's only valid for HK Ltds which have only 1 director and 1 shareholder who are the same individual (and not a corporation ), plus under british law I understand that a shadow director does have day to day power. Is it the concept that applies when using nominee directors ? My agent offered the possibility to establish a reserve director but in HK according to him his name would appear publicly. We were about to establish a reserve director for the Belize company until their correspondant company in Belize apparently said this status doesn't exist under Belize business law.

    Starting to wonder actually wether better options would appear if I used nominee directors for the HK company, with instructions to transfer benefits of the real beneficiary in case of his death or disappearance.

    Any feedback on that issue ?

  7. #17

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    Quote Originally Posted by Oldtimer:
    If I understand correctly , HK Company's shares are held by Belize company.
    In case of death of the director, you want the nominee director to transfer shares of the HK Co. to the beneficiary.
    So what happens to Belize Company? Will it be dissolved?

    Yes, the Belize company could be dissolved as soon as it is replaced by nominee directors, as its only fonction at the moment is to offer a confidential way to avoid the nominee director's structure in HK. Do you see the transfer of beneficiary working with the nominee director in place ?

  8. #18

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    belize co

    Personally I would keep the shares of HK Co. in the name of Belize Co.
    Appoint one of the adult Beneficiary as a director of the Belize company and give him/her the copy of your will or your letter of wishes as how to divide the shares of Belize company.


    Quote Originally Posted by LuisHK:
    Yes, the Belize company could be dissolved as soon as it is replaced by nominee directors, as its only fonction at the moment is to offer a confidential way to avoid the nominee director's structure in HK. Do you see the transfer of beneficiary working with the nominee director in place ?

  9. #19

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    Quote Originally Posted by Oldtimer:
    Personally I would keep the shares of HK Co. in the name of Belize Co.
    Appoint one of the adult Beneficiary as a director of the Belize company and give him/her the copy of your will or your letter of wishes as how to divide the shares of Belize company.

    Unfortunately this doesn't seem to work. As previously mentionned there is a risk I get ripped off from the beneficiary (Madam LuisHK at least as long as the kids are underage) plus the director of the HK company has to sign every document regarding decisions of both the Belize and HK company, and controls all bank and investment accounts so it wouldn't be very convenient for me to run these companies' affairs.

    Is there an easier solution going through the nominee directors in HK ? And are there risks of encountering tricky nominees in HK, when going through a well established firm ? I must say I'd feel more comfortable with HK based agents than with agents in more exotic juridictions like Belize, Panama or BVI.

  10. #20

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    Nominee

    There is a very small risk if you use reputable Chartered Accountant.
    You can use Nominee Companies of the HK Banks to appoint directors.
    Their charges will depend on the work involved.

    Quote Originally Posted by LuisHK:
    Unfortunately this doesn't seem to work. As previously mentionned there is a risk I get ripped off from the beneficiary (Madam LuisHK at least as long as the kids are underage) plus the director of the HK company has to sign every document regarding decisions of both the Belize and HK company, and controls all bank and investment accounts so it wouldn't be very convenient for me to run these companies' affairs.

    Is there an easier solution going through the nominee directors in HK ? And are there risks of encountering tricky nominees in HK, when going through a well established firm ? I must say I'd feel more comfortable with HK based agents than with agents in more exotic juridictions like Belize, Panama or BVI.