Now, let's speak about distinctions between limited liability company and company limited by shares. When we speak about limited liability company, the same situation as in company limited by shares, is minimum number of participants or shareholders. But in case of limited liability company, we have maximum number of shareholders. In case of company limited by shares, we do not have a limited number of shareholders, so it can be 10 million shareholders, even if it is not a public company limited by shares. Next, withdrawal, so I invested my money and I want to withdraw from the company and I will take the share from the company. It is possible in limited liability company if it is provided by the charter. In company limited by shares, yes, redemption is provided, but as an exclusion. So only in the very rare cases it is possible to withdraw from company limited by shares without having a buyer for your shares. Next, when we speak about dismissal in limited liability company, so let's suppose I have 10% of shares, and I can claim in court dismissal of another participant. Why? Because as you remember, in cases of, for example, liquidation or reorganization, 100% of shares is required from shareholders to vote for this matters. And if somebody has just 1% of shares and does not appear at the general shareholders meeting, we cannot take this decision. So that is why in limited liability company it is possible to dismiss a participant. In company limited by shares, you cannot dismiss as shareholder unless you are a super majority shareholder of 95% of voting shares. In this case, first you have to apply that other shareholders sell their shares to you. And then, if they do not, you can buy out these shares from these shareholders on market price. In other situations, there must be their consent. In company limited by shares, board of directors is a must. Board of directors of minimum five directors, in limited liability companies it is optional. Reserve fund is not required in limited liability company and is compulsory in company limited by shares, and it must be at least 5% from charter capital of the company. And additional contributions to assets are possible in case of limited liability companies. So disproportional contributions without consent of other participants, which is not possible in company limited by shares. If we compare companies limited by shares, the public one and non-public one, we can see that there are slight differences. The amount of charter capital in public company, it is ten times higher, and when we speak about non-public company, it is a limited company so that means it is a closed entity. And that is why, normally, there is priority right of other participants to sell shares. What it means, so for example, we are three shareholders here, A, B, C, and C wants to sell his shares to D. So C first shall offer his shares to A and B, and if A and B do not buy, Or they immediately say that, okay, no problem, then you sell to D. If A or B say that we would like to buy, then C must sell proportionately, to the shares of A and B, shares of C in this stage three capital. In public company no problems, so here, there shall not be limitations, but what is the same in public and non-public? Everyday, every year audit, compulsory audit, public information, so annual report, accountant balance, profits and losses statement, these are public document. When we speak about public subscription, so we say public company that means public subscription. Of course, if you want your shares to be quoted at the stock exchange, it is only public company. But, for example, in non-public company limited by shares, you can have 1 million of shareholders, but you do not quote shares. So how do you raise your funds, for example, by crowdfunding? In this case, you can be non-public company because you're not quoted at the stock exchange. So that is why public subscription is a question. So if you want your shares to be quartered at the exchange, then, of course, we speak about only public company, that is it. Next, what is important here? We shall speak about types of shares in company limited by shares. First of all, look here, when we speak about Russian Federation we speak about only non-documentary share, so there is no paper which is called a share. That is why a share is something which is in electronic form, you cannot find a share somewhere. But if you needed proof, it is easy, you go to registrar and your registrar provides you an x draft that you're a shareholder of this particular company with this particular shareholding. Next, in the Russian Federation, we have only registered shares, we do not have bearer shares. So we have shares in name, it is not possible to have some nominal holding share, it is in name. Next, placed and authorized shares both possible. So placed shares, shares which are paid, this is our charter capital. And authorized shares, potentially, so for example, we issued 100 shares, but potentially, so authorized shares what we can issue is 1 million shares. And next distinction, ordinary and preference shares. Ordinary shares means voting shares, they vote, they accrue dividend, they result on business activity of the company. So if business activity goes down, it is possible that no dividend is paid. If it goes up, so very high dividend may be paid, dependent on the results of the company. Dependent on your portion in these ordinary shares are your rights in the company. So for example, if you have one share, yes, you can claim what belongs particular to you. But if you have 1% of shares and 1% of shares in some companies, it is quite a lot. So, for example 1% of Sberbanka's [INAUDIBLE] back, so it is quite a lot sometimes. So in case of 1% of shares, you can claim to know other shareholders. And if you have 2% of shares, you have a right to nominate persons to board of directors. And if you have 10% of shares, you can claim extraordinary general meeting. So everything depends on volume of shares you have. And when we speak about preference shares, so preference shares, preference to what? Normally it is preference to dividend, so we stipulate particular dividend, and these dividends shall be paid on preference shares. Also, preference shares may be preference to liquidation value. And normally preference shares do not vote. So when we speak about voting shares, we speak about all these ordinary shares, but preference shares generally do not vote, but sometimes they do. So for example, preference shares do not vote when you did not pay dividends. So today you decided not to pay dividends on preference shares, so you withdrew from preference shareholders this right to dividend, you must give something back. So you give back this possibly to vote for preference shareholders or, in particular, questions, like reorganizational liquidation or amendments limiting particular rights of this preference shareholders. Also there may be convertible preference shares. And finally, let's speak about other types of shares. So convertible we already said, so preference shares shall be converted into ordinary shares. Preference shares or ordinary shares may not be converted into bonds, but it is possible that company issue bonds, which are convertible into preference or ordinary shares. So the general rule is less risky securities are converted into more risky securities. When we speak about the golden share, we speak about this share of this state in the company, and what is golden here? We speak about veto rights, we speak about presence in board of directors, we speak about presence if we speak about bankruptcy, for example. And cumulative shares, cumulative shares means shares which do not lose dividend. That means dividend, even if it is not paid, it is accrued each year. And if you haven't paid dividends for years 2017, 2018, 2019, but then you decided to make silent cumulative preference shares, you must pay all these dividends. If you still own one ruble, these shares still will be voted. So dividend is accrued on these preference shares.
