Can employees become shareholders of other companies?

Employees of a company may be shareholders of other companies, but they may not engage in similar business when they are directors or senior managers. According to relevant laws and regulations, this is to safeguard the interests of the company. Directors and senior managers shall not misappropriate funds.

legal ground

Article 148 of the Company Law

Prohibited acts of directors and senior managers Directors and senior managers shall not commit the following acts:

(1) Misappropriation of company funds;

(2) Opening an account for the company's funds in its own name or in the name of other individuals.

(3) Lending the company's funds to others or providing guarantee for others with the company's property without the consent of the shareholders' meeting, the shareholders' general meeting or the board of directors, in violation of the provisions of the company's articles of association;

(4) Entering into a contract or conducting a transaction with the company in violation of the articles of association or without the consent of the shareholders' meeting or general meeting.