A JSC can issue securities in the form of shares, bonds, and issuer’s options. In either case, such securities must be registered with the Federal Service for the Financial Markets of the Russian Federation (the “FSFM”), which replaced the former Federal Commission for the Securities Market (the “FCSM”) in March 2004. A JSC can issue common shares and/or several classes of preferred shares.The total value of a JSC’s preferred shares may not exceed 25% of its charter capital.
The concept of a “fractional share” was introduced on 1 January 2002. A fractional share is a share representing a portion of a whole share, which can come into existence when it is not possible to acquire the whole share during the consolidation of shares, when a shareholder exercises its preemptive right, or in the course of acquiring additional shares. A fractional share grants its owner the same rights that are granted by the whole share of the corresponding category or class, on a pro rata basis.
Source: Doing business in Russia by Baker & McKenzie
