1. How and where can one purchase (sell) Sberbank shares?
Share purchase and sale transactions are usually conducted on stock exchanges through professional participants in the securities market, i.e., brokers and investment companies. Sberbank, which is a professional participant in the securities market (License for brokerage activities No. 077-02894-100000 dated November 27, 2000), provides brokerage services for the purchase and sale of shares in the Key Market Sector of the stock market of Moscow Stock Exchange Group. Clients can conclude a brokerage service agreement in the Bank's subdivisions, a list of which can be found on the site http://www.sberbank.ru in the Private Clients section.
Please consider that investment in securities in general and Bank shares in particular involve a high degree of exposure. The price of shares on the secondary market is based on supply and demand on the part of investors and depends on a whole range of factors.
2. Where and how can one obtain information on the market value of the Bank's shares?
Official market quotations of Sberbank shares can be found on the Bank's site http://www.sberbank.com in the section For Shareholders and Investors, as well as on the site of the Moscow Stock Exchange http://moex.com/.
3. Dividend amount and payment terms
Decisions on the payment of dividends, the dividend amount and the date on which the persons entitled to dividends are determined are made by the General Shareholders' Meeting upon the recommendation of the Bank's Supervisory Board. The dividend amount may not exceed the one recommended by the Supervisory Board.
The dividend payment shall be made in non-cash monetary form by transfer of the dividends to bank accounts within the time periods defined by the Federal Law “On Joint-Stock Companies.” The dividend payment term depends on the status of the person in the shareholders' register: payment of dividends to a nominee shareholder or trustee registered in the shareholders' register shall be effected within 10 business days, while other persons registered in the shareholders' register shall be paid within 25 business days from the date on which the persons entitled to dividends were determined.
Payment of dividends for the previous (reporting) year shall be effected in the current year. The dividend amount for each share of the same type shall be equal.
Information on dividend payments for previous years can be found on the Bank's site http://www.sberbank.com in the For Shareholders and Investors section.
4. Who is entitled to dividends?
A person shall be entitled to dividends if he/she holds shares of a relevant category (type) or if he/she exercises the rights for these shares on the date the list of persons entitled to receive dividends is compiled (the record date). The record date shall be determined by the General Shareholders’ Meeting and cannot be set earlier than 10 or later than 20 days from the date the resolution on dividend payment was passed by the General Shareholders’ Meeting.
5. What amount of the Bank's net profit is allocated for dividend payment?
Information on the amount of the Bank's net profit allocated for dividend payment for previous years can be found on the Bank's site http://www.sberbank.com in the section For Shareholders and Investors.
6. Taxation of income derived from shares
Individuals who are RF residents:
- The tax rate for dividends from shares is 13 % of the dividend amount.
- The tax rate from the sale of shares held by an individual (the difference between the amounts obtained from the sale of shares and actual expenses incurred in relation to the purchase of the securities) is 13 %
Legal entities which are RF residents and foreign companies acting through a permanent representative office on the territory of the RF:
- The income tax rate from proceeds in the form of dividends from shares is 13 % of the dividend amount.
- The income tax rate on profit from the sale of shares totals 20 %. The tax shall be calculated and paid by the organizations independently pursuant to Article 280 of the Tax Code of the Russian Federation.
Individuals who are non-residents of the RF:
- The tax rate for dividends from shares is 15 % of the dividend amount.
- The tax rate on the sale of shares held by an individual is 30 %.
Legal entities which are non-residents of the RF:
- The income tax rate from proceeds in the form of dividends from shares is 15 % of the dividend amount. Where there are intergovernmental agreements on avoiding double taxation, reduced tax rates are possible.
- Legal entities which are non-residents of the RF do not pay income tax on income from the sale of shares. An exception is the sale by foreign legal entities of shares of Russian issuers more than 50 % of whose assets consists of immovable property located on the territory of the RF to Russian organizations (in this case the tax rate for proceeds from the sale of shares shall amount to 20 %).
7. Why might dividends not be deposited to the account of a shareholder of the Bank? How can one amend the shareholders' register of the Bank?
Usually dividends are not deposited to the shareholder's account due to the fact that the shareholders' register contains outdated information on the shareholder's banking details in the personal account section. To update them, you must submit a new form to the registrar (to STATUS JSC) or to the nominee holder (depositary) of your shares with whom you have concluded a Custody Service Agreement.
It is essential to have an identification document with you, as well as information on the bank details for transfer of dividends from Sberbank shares (the name of the banking institution where the deposit account was opened, the bank's address and the deposit account number).
Pursuant to the requirements of Federal Law No. 208-FZ dated December 26, 1995 “On Joint-Stock Companies”, a person registered in the shareholders' register of the Bank must inform the holder of the Bank's shareholders' register (STATUS JSC) in a timely manner on changes in his/her data (name and surname/title, residential address/location, bank details, passport and other data).
Should the registrar or the nominee holder (depositary) which concluded a Custody Service Agreement with the shareholder not possess current data, the shareholder might not receive voting ballots and dividends payable for the shares, and any operation with the shares in the Bank may be hindered. Should the shareholder provide no information on changes in his/her data, the Company and the registrar shall bear no responsibility for damages incurred in connection therewith.
8. How can one obtain a certificate of dividends paid for filing a tax return or get information on the destination of dividend payments?
On matters concerning the payment of dividends and the issuance of form 2-NDFL, please refer to the Office for Accounting of Shareholders’ Contributions and Participation in Subsidiaries, Accounting and Reporting Department (19 Vavilova St., Moscow, 117997, Russian Federation, e-mail: EEMilykova@sbrf.ru)
In order to obtain the certificate, one must submit an application in the form attached.
9. Who is entitled to participate in the shareholders’ meeting?
The persons entitled to participate in the shareholders’ meeting are those included in the list of persons entitled to participate in the general shareholders’ meeting: shareholders who as of the shareholders' register closing date hold voting (ordinary) shares; management companies of mutual funds for which voting (ordinary) shares of the Bank form the property of the mutual funds as of the shareholders' register closing date; trustees, if voting (ordinary) shares of the Bank are deposited to an individual account (depo account) with the trustee as of the register closing date; and trustors whose data was submitted by the trustees. Each share shall give one vote to a person included in the list of persons entitled to participate in the general shareholders’ meeting of the Bank.
10. How can one participate in the shareholders' meeting?
A person can participate in the shareholder's meeting of the Bank by submitting completed voting ballots to the Bank at the following address: 19 Vavilova St., Moscow, 117997, Russian Federation, or, if desired, one may participate on the day the meeting is conducted in person or through a representative acting in accordance with authority based on the directives of federal laws or acts of authorized governmental bodies or local self-government bodies or a written proxy. The voting proxy shall include the data on the represented party and the representative stipulated in the Federal Law “On Joint-Stock Companies”: for individuals - name and surname, identification document data (series and/or number of the document, date and place of issuing, and the authority which issued the document); for legal entities - name and data on location. A voting proxy shall be executed in accordance with the requirements set out in Article 185.1 Clauses 3 and 4 of the Civil Code of the Russian Federation or certified by the notary.
11. I took no actions to sell the shares of the Bank held by me (I did not approach the Bank to conclude a brokerage service agreement or approach other investment companies to sell the shares of the Bank), but I received a phone call (a letter, a telegram) proposing that I sell them
Recently there have been many cases when the Bank's shareholders received phone calls (letters, telegrams) with proposals to sell Sberbank shareholdings. The callers introduce themselves as employees of various, usually fictional, investment companies (letters and telegrams include cell phone numbers of people who introduce themselves as employees of certain investment companies) and propose that the Bank's shareholders sell the shares without taking into account the split of the nominal value of the shares which was conducted in July 2007, as a result of which the number of ordinary shares of the Bank held by the shareholder increased 1000-fold and the number of the privileged shares increased 20-fold, with a corresponding decrease of the nominal value. If shareholders express an interest in the sales of shares, an offer is made to send a notary to execute a document package for the securities purchase and sale transaction. In such cases we recommend not engaging with suspicious representatives of investment companies and contacting the call center for the Bank's shareholders created at the office of the Bank's registrar, STATUS JSC, at the number 8 800 500 87 43 or via email at firstname.lastname@example.org. We also recommend checking information on the market prices of the shares to calculate the actual current value of the package of held shares (this can be checked on the official site of the Bank http://www.sberbank.com in the section For Shareholders and Investors, as well as on the site of the Moscow Stock Exchange http://moex.com/).
12. How did the nominal and the market value of the Bank's shares change after their split in 2007?
As a result of the split of Sberbank shares in July 2007, each ordinary share with a nominal value of RUB 3000 was converted into 1000 ordinary shares with a nominal value of RUB 3, and each privileged share with a nominal value of RUB 60 was converted into 20 privileged shares with a nominal value of RUB 3.
The market value of the shares changed proportionally to the split. For example, if one ordinary share cost RUB 100,000 prior to the split, after the split it would have cost a thousand times less, i.e., RUB 100. However, the number of shares held by a shareholder increased 1000-fold. Thus, the share split did not change the market value of the share package held by each shareholder.