16-10a-604. Fractional shares.
(1) A corporation may:
(a) issue fractions of a share or pay in money the value of fractions of a share;
(b) arrange for disposition of fractional shares by the shareholders; or
(c) issue scrip in registered or bearer form entitling the holder to receive a full share upon
surrendering enough scrip to equal a full share.
(2) Each certificate representing scrip must be conspicuously labeled "scrip" and must
contain the information required to be included on a share certificate by Subsections
16-10a-625(2) and (3) and Section 16-10a-627.
(3) The holder of a fractional share is entitled to exercise the rights of a shareholder,
including the right to vote, to receive dividends, and to participate in the assets of the corporation
upon liquidation. The holder of scrip is not entitled to any of these rights unless the scrip
provides for them.
(4) The board of directors may authorize the issuance of scrip subject to any condition
considered desirable, including:
(a) that the scrip will become void if not exchanged for full shares before a specified date;
and
(b) that the shares for which the scrip is exchangeable may be sold and the proceeds paid
to the scripholders.
Enacted by Chapter 277, 1992 General Session
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Last revised: Thursday, May 28, 2009