[§414-74]  Fractional shares.  (a)  Acorporation may:

(1)  Issue fractions of a share or pay in money thevalue of fractions of a share;

(2)  Arrange for disposition of fractional shares bythe shareholders; or

(3)  Issue scrip in registered or bearer formentitling the holder to receive a full share upon surrendering enough scrip toequal a full share.

(b)  Each certificate representing scrip mustbe conspicuously labeled "scrip" and must contain the informationrequired by section 414-86(b).

(c)  The holder of a fractional share isentitled to exercise the rights of a shareholder, including the right to vote,to receive dividends, and to participate in the assets of the corporation uponliquidation.  The holder of scrip is not entitled to any of these rights unlessthe scrip provides for them.

(d)  The board of directors may authorize theissuance of scrip subject to any condition considered desirable, including:

(1)  That the scrip will become void if not exchangedfor full shares before a specified date; and

(2)  That the shares for which the scrip isexchangeable may be sold and the proceeds paid to the scripholders. [L 2000, c244, pt of §1]