1. General Statements. The agricultural joint-stock company of the closed type "Pravda" (A.O. "Pravda") is a legal entity and has the right to engage independently in export and import operations in compliance with the law.
2. Members of the Joint-stock Company. Participants in the joint-stock company may be any legal entity or physical person who has made an investment in the Charter capital by way of acquiring shares of stock.
3. Purpose and Types of Activities. The principal activity of the joint-stock company is the production, processing, storage and sale of agricultural produce.
4. Own Capital and Assets. The charter capital of the joint-stock company consists of 6,007,000,000 rubles, contributed by the participants of the joint-stock company.
5. Stock Categories and Par Values. Stock of the joint-stock company is divided into common and preferred stock, issued with one nominal price: common stock of the series "A" in the amount of 11,134 shares, nominal price 500,000 rubles, for a total of 5,567,000,000 rubles; preferred stock of the series "B" in the amount of 880 shares, nominal price 500,000 rubles, for a total of 440,000,000 rubles.
6. Stock Certificates and Stockholders’ Registration. Form of the stock output is non-cash. All Stockholders receive a certificate in exchange for the acquisition of stocks having the following properties: certificate number, number of stocks, stock’s category, face value, owner’s name, dividend rate, signatures of the General Director and Chief of Finance Department, joint-stock company’s seal and address.
7. Distribution of Profits. Net Profits are appropriated by the joint-stock company.
8. Property of the Joint-stock Company. Property is owned by the joint-stock company Pravda, which has the right to buy and sell property.
9. Property Security. The joint-stock company has the right to sell, exchange, rent, use as collateral or loan its property. The joint-stock company’s property may be seized only by court decision.
10. Finances and Liabilities. Financial resources of the joint-stock company include: profits, depreciation, and contributions of stockholders, enterprises, organizations and individuals, both Russian and foreign, bank loans, and others, according to law.
11. Inventory and Supplies. Pravda has the right to purchase supplies and hold inventories from different organizations, including governments and foreign countries.
12. Price Setting. The joint-stock company sells its products, service and waste products according to the prices and rates established by contract basis by itself or, in some cases, by the government.
13. Financial Year. The financial year is from January 1 to December 31.
14. Accounting. The joint-stock company Pravda conducts economic, business and statistic accounting in accordance with standards established in Russia.
15. Stockholders’ Meeting. The Stockholders’ Meeting is the principal organ of the joint-stock company’s management. If the Stockholders’ Meeting is attended by 50 percent or more of the members or their representatives, it is an official meeting. Stockholders’ Meetings must be conducted at least once a year and no later than three months after the end of the financial year to consider and approve the annual report and balance. Decisions of Stockholders’ Meetings must be made by a simple majority of members.
16. Board of Directors. The joint-stock company is managed by the Board of Directors between Stockholders’ Meetings. The Board of Directors is elected by the Stockholders’ Meeting for five years and consists of 9 members. Meetings of the Board of Directors are conducted at least once a quarter. If a meeting of the Board of Directors is attended by two-thirds of the members, it is an official meeting.
17. Executive Body. The General Director of the Corporation is the executive body. He or she is elected from the members of the Board of Directors by the Stockholders’ Meeting for 5 years. The list of the General Director’s responsibilities includes: day-to-day management of the joint-stock company and introduction of the joint-stock company to all organizations, enterprises, and government agencies of Russia as well as to other countries.
18. Rights of Stockholders. Stockholders have the right to take part in the joint-stock company’s management as is provided for in the charter document, to receive profit shares from business activity as dividends, to obtain information about the business activity and financial situation of the joint-stock company, and to withdraw from the joint-stock company.
19. Liabilities of Stockholders. Stockholders have the liability to execute the requirements of the joint-stock company’s documents as well as the decisions of the Board of Directors, to take part in Stockholders’ Meetings by themselves or through their representatives.
20. Audit and Control. The joint-stock company conducts operating, business and statistical accounting in accordance with order established in Russia.
21. Exit from the Joint-stock company. Stockholders have the right to sell their stock to other members of the joint-stock company or to the company itself according to an agreed-upon price.
22. Shutdown of the joint-stock company. Shutdown of the joint-stock company can be in the form of liquidation or reorganization. Liquidation occurs according to Russian legislation. Reorganization occurs by decision of the Stockholders’ Meeting.
23. Final Statements. All changes and amendments may be introduced to the charter only by decision of the Stockholders’ Meeting. In all other instances not governed by the charter document the joint-stock company is managed by the acting legislation of Russia.

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