Huawei maintains it is an employee-owned company. Ren Zhengfei retains approximately 1 percent of the shares of Huawei's holding company, Huawei Investment & Holding, with the remainder of the shares held by a trade union committee (not a trade union per se, and the internal governance procedures of this committee, its members, its leaders or how they are selected all remain unknown) that is claimed to be representative of Huawei's employee shareholders.  The company's trade union committee is registered with and pay dues to the Shenzhen federation of the All-China Federation of Trade Unions.  This is also due to a limitation in Chinese law preventing limited liability companies from having more than 50 shareholders.  About half of Huawei staff participate in this scheme (foreign employees are not eligible), and hold what the company calls "virtual restricted shares". These shares are nontradable and are allocated to reward performance.  When employees leave Huawei, their shares revert to the company, which compensates them for their holding.  Although employee shareholders receive dividends, their shares do not entitle them to any direct influence in management decisions, but enables them to vote for members of the 115-person Representatives’ Commission from a preselected list of candidates.  The Representatives’ Commission selects Huawei Holding's Board of Directors and Board of Supervisors.  Scholars have found that, after a few stages of historical morphing, employees do not own a part of Huawei through their “shares”. Instead, the “virtual stock is a contract right, not a property right; it gives the holder no voting power in either Huawei Tech or Huawei Holding, cannot be transferred, and is cancelled when the employee leaves the firm, subject to a redemption payment from Huawei Holding TUC at a low fixed price”.