Shareholders with preferred stock are entitled to receive an annual dividend at the stipulated rate of 14% based on the face value of a share preferentially over that of common shareholders ,and they are also entitled to participate distribution of unappropriated retained earnings. They have preferential payment of dividends in arrears in the succeeding year. Their rights to vote, to be elected, to participate distribution of residual properties are the same as those of the common shareholders; however, they don't have the right to vote in the elections of board of directors. Besides the aforementioned differences, their rights and obligations in all the other areas are the same.