17-6405. Fractional shares; certificated or uncertificated shares.
17-6405
17-6405. Fractional shares; certificated or uncertificated shares.
A corporation may issue, but shall not be required to issue, fractions
of a share, either represented by a certificate or uncertificated. If
it does not issue fractions of a share, it shall (1) arrange
for 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 when
those entitled to receive such fractions are determined, or (3) issue scrip
or warrants in registered or bearer form which shall entitle the holder to
receive a certificate for a full share or an uncertificated full share
upon the surrender of such scrip or
warrants aggregating a full share. A certificate for a fractional share
or an uncertificated fractional share
shall entitle the holder to exercise voting rights, to receive dividends
thereon and to participate in any of the assets of the corporation in the
event of liquidation, but scrip or warrants shall not so entitle the holder
thereof, unless otherwise provided therein. The board of directors may
cause scrip or warrants to be issued subject to the conditions that they
shall become void if not exchanged for certificates representing full
shares or for uncertificated full shares before a specified date, or
subject to the conditions that the
shares for which scrip or warrants are exchangeable may be sold by the
corporation and the proceeds thereof distributed to the holders of scrip or
warrants, or subject to any other conditions which the board of directors
may impose.
History: L. 1972, ch. 52, § 32;
L. 1986, ch. 399, § 3; July 1.