(1) A corporation may:
Issue fractions of a share or pay in cash the value of fractions of a share;
Arrange for disposition of fractional shares by the shareholders; or
Issue scrip in registered or bearer form entitling the holder to receive a full shareupon surrendering enough scrip to equal a full share.
Each certificate representing scrip shall be conspicuously labeled "scrip" and shallcontain the information required to be included in a share certificate by sections 7-106-206 (2)(a), (2)(c), and (4) and 7-106-208 (2).
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.
The board of directors may authorize the issuance of scrip subject to any conditionconsidered desirable, including:
That the scrip will become void if not exchanged for full shares before a stated date;and
That the shares for which the scrip is exchangeable may be sold and the proceedspaid to the scripholders.
Source: L. 93: Entire article added, p. 755, § 1, effective July 1, 1994. L. 2003: (4)(a) amended, p. 2316, § 228, effective July 1, 2004.