24/04/2021
An ordinary share gives one vote when resolving issues at a meeting of shareholders and participates in the distribution of net profit after replenishment of reserves and payment of dividends on bonds and preferred shares. The size of the dividend per ordinary share is determined by the general meeting of shareholders and can be increased or decreased depending on the results of the company's financial activities. If the position of the joint-stock company is unstable or the development needs require the attraction of large funds, the dividend on ordinary shares may not be paid, especially in the first years after the establishment of the joint-stock company.
A preference share does not give the right to vote, unless otherwise provided in the charter of a JSC, but unlike an ordinary share, it brings a guaranteed dividend and has an advantage in the distribution of profits and liquidation of the company. The size of the fixed dividend on preferred shares is set upon their issue, and current settlements with holders of preferred shares are made before settlements with holders of common securities