[§414-84]  Share dividends.  (a)  Unlessthe articles of incorporation provide otherwise, shares may be issued pro rataand without consideration to the corporation's shareholders or to theshareholders of one or more classes or series.  An issuance of shares underthis subsection is a share dividend.

(b)  Shares of one class or series may not beissued as a share dividend in respect of shares of another class or seriesunless:

(1)  The articles of incorporation so authorize;

(2)  A majority of the votes entitled to be cast bythe class or series to be issued approve the issue; or

(3)  There are no outstanding shares of the class orseries to be issued.

(c)  If the board of directors does not fix therecord date for determining shareholders entitled to a share dividend, it isthe date the board of directors authorizes the share dividend. [L 2000, c 244,pt of §1]