"Every company can issue shares with differential voting rights up to 50% of its share capital". Validate this statement with a brief answer.

Section 43 of the Companies Act, 2013, provides that a company limited by shares can issue equity shares with differential rights as to dividend, voting or otherwise in accordance with the conditions which are prescribed under Rule 4 of the Companies (Share Capital and Debentures) Rules, 2014. Rule 4 of Companies (Share capital and Debentures) Rules, 2014 specifies a condition w.r.t. the limit on issue of shares with differential rights i.e., a company limited by shares can issue equity shares with differential rights complying with the condition that the voting power in respect of shares with differential rights of the company shall not exceed 74% of total voting power including voting power in respect of equity shares with differential rights issued at any point of time. Hence, the statement that every company can issue shares with differential voting rights up to 50% of its share capital is well within the limit mentioned in Rule 4 of Companies (Share Capital and Debentures) Rules, 2014. Thus, this statement is correct.