17-6405.   Fractional shares; certificated or uncertificated shares.A corporation may issue, but shall not be required to issue, fractionsof a share, either represented by a certificate or uncertificated. Ifit does not issue fractions of a share, it shall (1) arrangefor the disposition of fractional interests by those entitled thereto, (2)pay in cash the fair value of fractions of a share as of the time whenthose entitled to receive such fractions are determined, or (3) issue scripor warrants in registered or bearer form which shall entitle the holder toreceive a certificate for a full share or an uncertificated full shareupon the surrender of such scrip orwarrants aggregating a full share. A certificate for a fractional shareor an uncertificated fractional shareshall entitle the holder to exercise voting rights, to receive dividendsthereon and to participate in any of the assets of the corporation in theevent of liquidation, but scrip or warrants shall not so entitle the holderthereof, unless otherwise provided therein. The board of directors maycause scrip or warrants to be issued subject to the conditions that theyshall become void if not exchanged for certificates representing fullshares or for uncertificated full shares before a specified date, orsubject to the conditions that theshares for which scrip or warrants are exchangeable may be sold by thecorporation and the proceeds thereof distributed to the holders of scrip orwarrants, or subject to any other conditions which the board of directorsmay impose.

      History:   L. 1972, ch. 52, § 32;L. 1986, ch. 399, § 3; July 1.