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AEQUITAS PROJECT

AEQUITAS PROJECT. “SOCIETAS EUROPEAE” AEQUITAS PROJECT European Commission V framework program IST March, 2002. DEFINITION. IST-2000-29569 contract Key Action II, line II.4.2 called Large-scale trust and confidence The objective of project is:

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AEQUITAS PROJECT

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  1. AEQUITAS PROJECT • “SOCIETAS EUROPEAE” • AEQUITAS PROJECT • European Commission • V framework program • IST • March, 2002

  2. DEFINITION • IST-2000-29569 contract • Key Action II, line II.4.2 • called Large-scale trust and confidence • The objective of project is: • to speed up the procedures and to increase the effectiveness of the quality service that the judicial operators, specifically Registrars and Attorneys, render to the society, through the use of secure and confidential Internet communications • Budget • 521.039 euros, the EU contributes 472.000 • Duration • 20 months, initiation date: 1st of August of 2001 • Web adress • http://www.euro-aequitas.org

  3. THE TEAM • Users • Greffiers de Tribunal de Commerce Associés (Greffiers de Paris,fr) • Consejo General de los Procuradores de los Tribunales (es) • Colegio de Registradores de la Propiedad y Mercantiles (es) • Camara dos Solicitadores (pt) • Law University of Lithuania (li) • The Project is opened to new users. • Development • Tools Banking Solutions S.L. (es) • University of Zaragoza(es) • Promotion • Association for the Promotion of New Information Technologies and eCommerce (APTICE, es)

  4. COMMUNICATIONS FLOW • The participants represent two important flows within the communication between organizations in juridical sphere: • the communication between courts and the parties which intervene in lawsuits • the communication between the registries and the persons or agencies that need to know, proof or modify the contents of the registrations, between those who are also found in the courts • As objectives in the construction of the system, the following can be set forth: • facilitate the exchange of documents with probative weight between different countries of the European Union, bringing forth information regarding the nature of the document and guaranteeing the capacity and identity of the issuer, as well as fulfilling formal requirements. • achieve that communications with legal effects might be accomplished, when they might be legally advisable, by means of individualized and documented acts.

  5. ELEMENTS OF THE SYSTEM • an association • which assembles the organizations and acts as a trustworthy third party • a computer tool • which allows the secure transmission of documents • a documents catalogue • which facilitates their interpretation to jurists of different countries and allows the computer tool to control compliance with origin and formal requirements.

  6. THE ASSOCIATION • The association assembles juridical operators interested in the use of telematic methods in order to exchange real documents. • Their objectives can be wide and they can set it up as a forum in order to exchange know how and to establish standards. • It is essential that each participant organization have a LDAP directory available, in keeping with the association's defined structure and on which this will be based in order to guarantee the identity and signatures of its members. • The Association can also facilitate the establishment of common protocols with external organizations which communicate with various of its members.

  7. THE COMPUTING TOOL • The purpose of the tool is to allow the exchange of electronic documents between members of the same organization and between different organizations and their members. • The documents could incorporate the following functions: • - confidentiality during transmission • - electronic signature • - acknowledgement of receipt • - time lock of signatures and of the communication acts • - registry of the contents of the document by a trustworthy third party

  8. THE CATALOGUE • The objective of the catalogue is to increment the juridical security in the exchange of real documents, mainly between different countries. • It will be formed by documents with a definite juridical nature • The following information will be incorporated in the documents: • - denomination, nature and legal effects • - relevant norms and rulings concerning the document • - format: it will stand defined in a signed form • - capacity for its emission • - concise guarantees for its transmission • - confidentiality requirements

  9. EXAMPLES • The project has the objetive to study the most important cases regulated on the estatute of European Company 2157/2001 of the European Council, which can generate communications flows between European Trade Regsters. The examples that have been chosen are the following: • 1. TRANFER OF DOMICILE (A.8 ) • 2. TAKE-OVER MERGER (A. 17.2.A) • 3. MERGER BY FORMATION(A. 17.2.B) • 4. EC “HOLDING” (A. 32) • 5. FORMATION OF A SUBSIDIARY EC (A.35) • 6. CONVERSION INTO EC (A.37)

  10. TRANSFER OF DOMICILE REGULATION The transfer of SE domicile from one Country to another (EU) is regulated in A. 8. RSE This article studies the following phases: 1. Project of translation made by the management of administration with the requirements contemplated in A.8.2 . 2. Information report justifing the juridical and economical aspects 3. Publicity through publication of the Project in the official bulletins of both countries 4. The respect of the rights of creditors and minority shareholders through the terms regulated in A.8.6. 5. General Shareholders Agreement with the majorities provided to change the Company statutes. 6. Certification of the Origin Trade Register crediting the requirements regulated in RSE. 7. Inscription thought the transfer of the seatments to the destiny Trade Register.

  11. TRANSFER OF DOMICILE INFORMATION FLOWS 1. PRINCIPAL SENDING-ACKNOWLEDGMENT OF RECEIPT 2.CERTIFICATION OF AGREEMENT OF TRANSFER-ACKNOWLEDGEMENT OF RECEIPT 3. CERTIFICATION A. 8.8 Y 8.15 RSE –ACKNOWLEDGMENT OF RECEIPT 4. CERTIFICATION 8.11 RSE-ACKNOWLEDGEMENT OF RECEIPT 5. INSCRIPTION IN THE DESTINY TRADE REGISTER

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  25. TRANSFER OF DOMICILE

  26. TRANSFER OF DOMICILE • 1.2.1.1 TYPE • 1.2.1.2 NAME • 1.2.1.3 NUMBER • 1.2.1.4 FLOOR • 1.2.2 POPULATION • 1.2.3 COUNTY • 1.2.4 POSTAL CODE • 1.3.REGISTRAR(The categories to include here, the format and the order of the same ones will be different in function of what is introduced in country. The categories format and order that I consign here would be those that will be used SPAIN" it is introduced" inside" COUNTRY") • 1.3.1 NAME • 1.3.2 LAST NAME 1

  27. TRANSFER OF DOMICILE • 1.3.3 LAST NAME 2 • 2.ADRESÉE((O RECEIVER): TRADE REGISTER OF DESTINATION • 2.1.COUNTRY • 2.2.DOMICILE (to see note to the section 1.2) • 2.2.1 VIA • 2.2.1.1 TYPE • 2.2.1.2 NAME • 2.2.1.3 NUMBER • 2.2.1.4 FLOOR • 2.2.2 POPULATION • 2.2.3 COUNTY • 2.2.4 POSTAL CODE • 2.3.REGISTRAR(see note to the section 1.3) • 2.3.1 NAME • 2.3.2 LAST NAME 1 • 2.3.3 LAST NAME 2

  28. TRANSFER OF DOMICILE • 3.DATE OF REMISSION OF THE DOCUMENTS • 3.1.DAY • 3.2.MONTH • 3.3.YEAR • 4.INFORMATION OF THE DOCUMENT´S SUBJECT • 4.1.REGISTER IN WHICH is ENTERED • 4.2.REGISTRAL DATA • 4.3 DATA OF THE FELLOW • 4.3.1 COUNTRY (NATIONALITY) • 4.3.2 JURIDICAL PERSON (to see note to the section 1.3) • 4.3.2.1 NAME • 4.3.2.2 LAST NAME1 • 4.3.2.3 LAST NAME2 • 4.3.3 PHISICAL PERSON (to see note to the section 1.3) • 4.3.3.1 COMPANY DENOMINATION • 4.3.3.2 COMPANY TYPE

  29. TRANSFER OF DOMICILE • 4.3.3.3 TRADE NAME • 4.4 HOME / REGISTERED OFFICE (BEFORE OF TRANSFER) • 4.4.1 COUNTRY (to see note to the section 1.2) • 4.4.1.1 VIA • 4.4.1.1.1 TYPE • 4.4.1.1.2 NAME • 4.4.1.1.3 NUMBER • 4.4.1.1.4 FLOOR • 4.4.1.2 POPULATION • 4.4.1.3 COUNTY • 4.4.1.4 POSTAL CODE • 5. INFORMATION OF THE DOCUMENT • 5.1 TYPE OR CLASS OF DOCUMENT < certification of the A.8.8., together with the requirements demanded by the Spanish regulatory scheme, contents in the A.19 RRM) • 5.2 REFERENCE OF THE DOCUMENT (here he/she would go the number or compound code for the domestic digits, the digits identificativos of the Register or authority radio station, the digits identificativos of the document type and the digits of the entrance number in the Register) • 5.3 CONTENT OF THE DOCUMENT

  30. TRANSFER OF DOMICILE • SECOND • TRANSFER AGREEMENT • 1.SENDER:TRADE REGISTER OF ORIGIN • 1.1.COUNTRY • 1.2.DOMICILE(the categories to include here, the format and the order of the same ones will be different in function of what is introduced in country. The categories format and order that I consign here would be those that will be used SPAIN" it is introduced" inside" COUNTRY") • 1.2.1 VIA • 1.2.1.1 TYPE • 1.2.1.2 NAME

  31. TRANSFER OF DOMICILE • 1.2.1.3 NUMBER • 1.2.1.4 FLOOR • 1.2.2 POPULATION • 1.2.3 COUNTY • 1.2.4 POSTAL CODE • 1.3.REGISTRAR(The categories to include here, the format and the order of the same ones will be different in function of what is introduced in country. The categories format and order that I consign here would be those that will be used SPAIN" it is introduced" inside" COUNTRY") • 1.3.1 NAME • 1.3.2 LAST NAME 1 • 1.3.3 LAST NAME 2 • 2.ADRESÉE((O RECEIVER): TRADE REGISTER OF DESTINATION • 2.1.COUNTRY • 2.2.DOMICILE (to see note to the section 1.2) • 2.2.1 VIA • 2.2.1.1 TYPE • 2.2.1.2 NAME

  32. TRANSFER OF DOMICILE • 2.2.1.3 NUMBER • 2.2.1.4 FLOOR • 2.2.2 POPULATION • 2.2.3 COUNTY • 2.2.4 POSTAL CODE • 2.3.REGISTRAR(see note to the section 1.3) • 2.3.1 NAME • 2.3.2 LAST NAME 1 • 2.3.3 LAST NAME 2 • 3.DATE OF REMISSION OF THE DOCUMENTS • 3.1.DAY • 3.2.MONTH • 3.3.YEAR • 4.INFORMATION OF THE DOCUMENT´S SUBJECT • 4.1.REGISTER IN WHICH is ENTERED

  33. TRANSFER OF DOMICILE • 4.2.REGISTRAL DATA • 4.3 DATA OF THE FELLOW • 4.3.1 COUNTRY (NATIONALITY) • 4.3.2 JURIDICAL PERSON (to see note to the section 1.3) • 4.3.2.1 NAME • 4.3.2.2 LAST NAME1 • 4.3.2.3 LAST NAME2 • 4.3.3 PHISICAL PERSON (to see note to the section 1.3) • 4.3.3.1 COMPANY DENOMINATION • 4.3.3.2 COMPANY TYPE • 4.3.3.3 TRADE NAME • 4.4 HOME / REGISTERED OFFICE (BEFORE OF TRANSFER) • 4.4.1 COUNTRY (to see note to the section 1.2) • 4.4.1.1 VIA • 4.4.1.1.1 TYPE • 4.4.1.1.2 NAME

  34. TRANSFER OF DOMICILE • 4.4.1.1.3 NUMBER • 4.4.1.1.4 FLOOR • 4.4.1.2 POPULATION • 4.4.1.3 COUNTY • 4.4.1.4 POSTAL CODE • 5. INFORMATION OF THE DOCUMENT • 5.1 TYPE OR CLASS OF DOCUMENT < certification of the A.8.8., together with the requirements demanded by the Spanish regulatory scheme, contents in the A.19 RRM) • 5.2REFERENCE OF THE DOCUMENT (here he/she would go the number or compound code for the domestic digits, the digits identificativos of the Register or authority radio station, the digits identificativos of the document type and the digits of the entrance number in the Register) • 5.3 CONTENT OF THE DOCUMENT • 5.3.1 DATE OF THE DOCUMENT (not to confuse with the remission date) • 5.3.2 AUTHOR OF THE DOCUMENT • 5.3.3 PURPOSE OF THE DOCUMENT < to credit that the agreement has taken with the requirements settled down by the law and its content > • 5.3.4 SPECIFIC CONTENT

  35. TRANSFER OF DOMICILE • 5.3.4.1. GENERAL SHAREHOLDERS MEETING AGREEMENT • 5.3.4.1.1. MEETING´s DATE • 5.3.4.1.1.1 convocation • «option:» only convocation • «option:» first convocation, and «hour and date» in second. • 5.3.4.1.1.2 statutory forecasts • 5.3.4.1.1.3 presidency and Secretary of the Meeting • 5.3.4.1.1.4 constitution of the Meeting • a)  assistants list • b)  Constitution of the Meeting. • c)  Protests • 5.3.4.1.1.5 development of the Meeting • 5.3.4.1.1.6 first point of the SCHEDULE

  36. TRANSFER OF DOMICILE • a)  AGREEMENT PROPOSAL • AGREEMENT • 5.3.4.1.2. SOCIAL ARTICLES OF ASSOCIATION (after modifications) • 5.3.4.1.2.1. Social denomination • 5.3.4.1.2.2. Object • 5.3.4.1.2.3. Duration • 5.3.4.1.2.4. operations date beginning • 5.3.4.1.2.5. Social exercise • 5.3.4.1.2.6. Registered office • 5.3.4.1.2.7. Social capital and shares • 5.3.4.1.2.8. General meeting • 5.3.4.1.2.9. Council of Administration • 5.3.4.1.2.10. Other dispositions (you count annual...) • 5.3.4.1.3. DATES • 5.3.4.1.3.1. agreement date • Day • Month • Year • 5.3.4.1.3.2. transfer date proposal • Day • Month • Year • Second point of the Schedule • «.........................» • IV)  session enclosure • 5.4.3.2.2. PLACE, DATES, SIGNATURE, HEADING AND STAMP

  37. TRANSFER OF DOMICILE THIRD STEP . REGISTRAL CERTIFICATION WITH THE REQUIREMENTS OF THE RSE • 1.SENDER:TRADE REGISTER OF ORIGIN • 1.1.COUNTRY • 1.2.DOMICILE(the categories to include here, the format and the order of the same ones will be different in function of what is introduced in country. The categories format and order that I consign here would be those that will be used SPAIN" it is introduced" inside" COUNTRY") • 1.2.1 VIA • 1.2.1.1 TYPE • 1.2.1.2 NAME • 1.2.1.3 NUMBER • 1.2.1.4 FLOOR • 1.2.2 POPULATION

  38. TRANSFER OF DOMICILE • 1.2.3 COUNTY • 1.2.4 POSTAL CODE • 1.3.REGISTRAR(The categories to include here, the format and the order of the same ones will be different in function of what is introduced in country. The categories format and order that I consign here would be those that will be used SPAIN" it is introduced" inside" COUNTRY") • 1.3.1 NAME • 1.3.2 LAST NAME 1 • 1.3.3 LAST NAME 2 • 2.ADRESÉE((O RECEIVER): TRADE REGISTER OF DESTINATION • 2.1.COUNTRY • 2.2.DOMICILE (to see note to the section 1.2) • 2.2.1 VIA • 2.2.1.1 TYPE • 2.2.1.2 NAME • 2.2.1.3 NUMBER • 2.2.1.4 FLOOR • 2.2.2 POPULATION • 2.2.3 COUNTY • 2.2.4 POSTAL CODE

  39. TRANSFER OF DOMICILE • 2.3.REGISTRAR(see note to the section 1.3) • 2.3.1 NAME • 2.3.2 LAST NAME 1 • 2.3.3 LAST NAME 2 • 3.DATE OF REMISSION OF THE DOCUMENTS • 3.1.DAY • 3.2.MONTH • 3.3.YEAR • 4.INFORMATION OF THE DOCUMENT´S SUBJECT • 4.1.REGISTER IN WHICH is ENTERED • 4.2.REGISTRAL DATA • 4.3 DATA OF THE FELLOW • 4.3.1 COUNTRY (NATIONALITY) • 4.3.2 JURIDICAL PERSON (to see note to the section 1.3) • 4.3.2.1 NAME • 4.3.2.2 LAST NAME1

  40. TRANSFER OF DOMICILE • 4.3.2.3 LAST NAME2 • 4.3.3 PHISICAL PERSON (to see note to the section 1.3) • 4.3.3.1 COMPANY DENOMINATION • 4.3.3.2 COMPANY TYPE • 4.3.3.3 TRADE NAME • 4.4 HOME / REGISTERED OFFICE (BEFORE OF TRANSFER) • 4.4.1 COUNTRY (to see note to the section 1.2) • 4.4.1.1 VIA • 4.4.1.1.1 TYPE • 4.4.1.1.2 NAME • 4.4.1.1.3 NUMBER • 4.4.1.1.4 FLOOR • 4.4.1.2 POPULATION • 4.4.1.3 COUNTY • 4.4.1.4 POSTAL CODE • 5. INFORMATION OF THE DOCUMENT • 5.1 TYPE OR CLASS OF DOCUMENT < certification of the A.8.8., together with the requirements demanded by the Spanish regulatory scheme, contents in the A.19 RRM)

  41. TRANSFER OF DOMICILE • 5.2 REFERENCE OF THE DOCUMENT (here he/she would go the number or compound code for the domestic digits, the digits identificativos of the Register or authority radio station, the digits identificativos of the document type and the digits of the entrance number in the Register) • 5.3 CONTENT OF THE DOCUMENT • 5.3.1 DATE OF THE DOCUMENT (not to confuse with the remission date) • 5.3.2 AUTHOR OF THE DOCUMENT • 5.3.3 PURPOSE OF THE DOCUMENT < Trade Registrar certification in order to prove the observance of the legal requirements. > • 5.3.4 SPECIFIC CONTENT • 5.3.4.1. CERTIFICATION A. 8.8. RSE • 5.3.4.1.1. SENDER REGISTRAR • 5.3.4.1.1.1. COUNTRY (to see note to box 1.3) • NAME • LAST NAME 1 • LAST NAME 2 • 5.3.4.1.2. TRADE REGISTER • 5.3.4.1.2.1.COUNTRY (to see note to the box 1.2) • VIA

  42. TRANSFER OF DOMICILE • TYPE • NAME • NUMBER • FLOOR • POPULATION • COUNTY • POSTAL CODE • 5.3.4.1.3. DATE of THE CERTIFICATION • 5.3.4.1.3.1 BOOK • 5.3.4.1.3.2 VOLUME • 5.3.4.1.3.3 LEAF • 5.3.4.1.4. CONTENT OF THE CERTIFICATION • A. TRANSFER PROJECT • A1.social denomination • A2. registered office • A3. domicile proposed • A4. proposed articles of association

  43. TRANSFER OF DOMICILE • A5. consequences for workers • B.PROJECT´S PUBLICATION • B1.day • B2. month • B3. year • B4. Number, page BORME • C.INFORM DEVELOPED BY THE ADMINISTRATION ORGAN • That, dated «.....», the mandatory report was emitted justifying the proposed modification. • D.TIME TO EXERCISE THE RIGHT OF EXAM • D1. DATE OF THE PROPOSAL • D2. DATE CONVOCATION IT JOINS • D3. DATE OF THE ADOPTION OF THE AGREEMENT • E. RIGHTS OF THE CREDITORS AND MINORITY SHAREHOLDERS (The categories would be the points in boldface. The rest is to informative title) • 1)  Exercise of the right. That, lapsed the legal term, they were separated from the society, for not having been stuck to the transformation agreement, the following partners of the entity: •  Don «it Names and Last names and data of identity», regular of «number» you work that represent the «so much percent» of the capital stock of the entity.

  44. TRANSFER OF DOMICILE • «.........................» •  The regular partner of «number» you work that represent the «so much percent» of the capital stock of the entity whose data of identity are ignored. • in the sum of «number» pesetas/euros for action. • 2) percentage on Social Capital • 3) Capital reduction. That the capital impairment corresponding to the aforementioned stocks has been published in the Official Bulletin of the Mercantile Register of «it dates», p. «.....», as well as in the newspapers «.....», of «it dates», p. «.....», and «.....», of «it dates», p. «.....», what credits by means of exhibition of those referred copies. • It photocopies of the aforementioned announcements, concordant with their originals, I incorporate to the present. • 4)  Creditors

  45. TRANSFER OF DOMICILE • «option:» The right of opposition doesn't exist: • The appearer that the present reduction doesn't attribute to the right creditors of opposition declares as long as it has been made with position to benefits [alternatingly: free reserves]. • «option:» If right of opposition exists: • «option:» the appearer that no creditor has exercised his right of opposition Declares. • «option:» the appearer that you/they have only exercised her right of opposition the following creditors Declares: • 1.   Don «it Names and Last names», neighbor of «municipality (county)», with home in «he/she remains silent», and DNI «.....», regular of a credit against the society for amount of «number» pesetas/euros. • Accrediting this    A has been lent guarantee to its whole satisfaction. • 2.   Don «it Names and Last names», neighbor of «municipality (county)», with home in «he/she remains silent», and DNI «.....», regular of a credit against the society for amount of «number» pesetas/euros. • Accrediting this    A has been notified the benefit of foreseen deposit in the art.  166 of the Law.

  46. TRANSFER OF DOMICILE • 3.   Don «it Names and Last names», neighbor of «municipality (county)», with home in «he/she remains silent», and DNI «.....», regular of a credit against the society for amount of «number» pesetas/euros. •    Dicho credit has been extinguished, by means of its payment on the part of the society, before this act. • 6)  Pago to the partners. He/she declares the representative of the society that, in the dates that are indicated and previous their paying-off, they have been reimbursed, for the expressed value, the following stocks corresponding to the separate partners: • Work «.....» to «.....», dated «.....». • «.........................» • [In their case, to add:] Except as for the sum of «number» pesetas/euros, corresponding to partners • «option:» unknown • «option:» that they have not appeared in time and he/she forms to receive the payment • «option:» regular of the stocks numbers «.....» to «.....». • This quantity has been consigned in deposit, dated «.....», to their legitimate owners' disposition. • : • CERTIFICATION ASSURING THE RESPECTING LEGAL AND STATUTORY REQUIREMENTS • F1. the date • F2. Legal norms (A.8 rse+A.19RRM) • F3. statutory norms

  47. TRANSFER OF DOMICILE • G. PUBLICATION IN OFFICIAL BULLETIN AND THE most important 2 NEWSPAPERS • G1. date • G2. data BORPME • G3. data DiariY1... • G4. data DiariY2... • H. Notarial act OF MODIFICATION OF ARTICLES OF ASSOCIATION INC • H1. Notary • H2. Place • H3. date • I.INSCRIPTION OF THE MODIFICATION OF ARTICLES OF ASSOCIATION • I1. Book • I2. Volume • I3. Leaf

  48. TRANSFER OF DOMICILE • 5.3.4.1.5. PLACE, DATE,SIGNATURE, HEADING AND STAMP • 5.3.4.2. CERTIFICATION A.8.15.RSE • 5.3.4.2.1. REGISTRAR´S CERTIFICATION • 5.3.4.1.1.1. COUNTRY (to see note to box 1.3) • NAME • LASTNAME1 • LASTNAME2 • 5.3.4.2.2. TRADE REGISTER • 5.3.4.2.2.1.COUNTRY (to see note to the box 1.2) • VIA • TYPE • NAME • NUMBER • FLOOR • POPULATION • COUNTY

  49. TRANSFER OF DOMICILE • POSTAL CODE • 5.3.4.2.3. CERTIFICATION SUBJECT • 5.3.4.2.3.1 BOOK • 5.3.4.2.3.2 FOLIO • 5.3.4.2.3.3 LEAF • 5.3.4.2.4. CONTENT (default" Text: THAT THE SOCIETY IS NOT IN SOME OF THE FORESEEN SITUATIONS IN THE A.8.15 RSE, AS ONE DEDUCES FROM THE BOOKS OF THE REGISTRATION (a.8.15 rse"...")) • 5.3.4.2.5. PLACE, DATE, SIGNATURE, HEADING AND STAMP

  50. XML TAGS TUTORIAL • 1. XML is for structuring data • Structured data includes things like spreadsheets, address books, configuration parameters, financial transactions, and technical drawings. XML is a set of rules (you may also think of them as guidelines or conventions) for designing text formats that let you structure your data. XML is not a programming language, and you don't have to be a programmer to use it or learn it. XML makes it easy for a computer to generate data, read data, and ensure that the data structure is unambiguous. XML avoids common pitfalls in language design: it is extensible, platform-independent, and it supports internationalization and localization. XML is fully Unicode-compliant. • 2. XML looks a bit like HTML • Like HTML, XML makes use of tags (words bracketed by '<' and '>') and attributes (of the form name="value"). While HTML specifies what each tag and attribute means, and often how the text between them will look in a browser, XML uses the tags only to delimit pieces of data, and leaves the interpretation of the data completely to the application that reads it. In other words, if you see "<p>" in an XML file, do not assume it is a paragraph. Depending on the context, it may be a price, a parameter, a person, a p... (and who says it has to be a word with a "p"?). • 3. XML is text, but isn't meant to be read • Programs that produce spreadsheets, address books, and other structured data often store that data on disk, using either a binary or text format. One advantage of a text format is that it allows people, if necessary, to look at the data without the program that produced it; in a pinch, you can read a text format with your favorite text editor. Text formats also allow developers to more easily debug applications. Like HTML, XML files are text files that people shouldn't have to read, but may when the need arises. Less like HTML, the rules for XML files are strict. A forgotten tag, or an attribute without quotes makes an XML file unusable, while in HTML such practice is tolerated and is often explicitly allowed. The official XML specification forbids applications from trying to second-guess the creator of a broken XML file; if the file is broken, an application has to stop right there and report an error. • 4. XML is verbose by design • Since XML is a text format and it uses tags to delimit the data, XML files are nearly always larger than comparable binary formats. That was a conscious decision by the designers of XML. The advantages of a text format are evident (see point 3), and the disadvantages can usually be compensated at a different level. Disk space is less expensive than it used to be, and compression programs like zip and gzip can compress files very well and very fast. In addition, communication protocols such as modem protocols and HTTP/1.1, the core protocol of the Web, can compress data on the fly, saving bandwidth as effectively as a binary format.

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