China Securities Regulatory Commission, Implementing Opinions on Establishing a Science and Technology Innovation Board on the Shanghai Stock Exchange and Launching a Pilot Registration System

Promulgated: January 28, 2019

Effective: as of date of promulgation

Main contents: Science and technology innovation enterprises are permitted to offer a class of shares with special voting rights. The number of votes attaching to each share with special voting rights shall be greater than the number of votes attaching to each common share, but other shareholder rights shall be identical to those of common shares. Once transferred, the voting rights attaching to shares with special voting rights shall be restored to ones equivalent to those of common shares. Where a company issues shares with special voting rights, it shall specify in its articles of association the qualifications to be a holder of shares with special voting rights, the arrangement for the ratio of the number of votes attaching to shares with special voting rights to the number of votes attaching to common shares, the scope of shareholders' general meeting matters the votes on which holders of shares with special voting rights may participate, the lockup arrangement for shares with special voting rights and transfer restrictions.