Is it illegal for a company to own different shares?

It is not illegal for China companies to share the same shares but have different rights. According to the Company Law of People's Republic of China (PRC), the shareholders shall exercise their voting rights at the shareholders' meeting in proportion to their capital contribution. However, unless otherwise stipulated in the articles of association, that is, the company may stipulate in the articles of association that different shareholders holding the same shares may have different voting rights.

legal ground

Article 34 of the Company Law of People's Republic of China (PRC)

Shareholders shall receive dividends in proportion to the paid-in capital contribution; When the company increases its capital, shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution. Except that all shareholders agree not to pay dividends according to the proportion of capital contribution or not to subscribe for capital contribution in priority.

Article 42

At the shareholders' meeting, shareholders shall exercise their voting rights in proportion to their capital contribution; However, unless otherwise stipulated in the articles of association.