§ 7-106-204 — Share dividends

(1) Unless otherwise provided in the articles of
incorporation, shares may be issued pro rata and without consideration to the
shareholders or to the shareholders of one or more classes or series of its shares.
An issuance of shares pursuant to this subsection (1) is a share dividend.

(2) Shares of one class or series may not be issued as a share dividend in
respect of shares of another class or series unless:

(a) The articles of incorporation so authorize;

(b) Such issuance is approved by a majority of the votes entitled to be cast
by the class or series to be issued; or

(c) There are no outstanding shares of the class or series to be issued.

(3) The bylaws or, in the absence of an applicable bylaw, the board of
directors may fix a future date as the record date for determining shareholders
entitled to a share dividend. If no future record date is so fixed, the record date is
the date the board of directors authorizes the share dividend.

Legislative History

Source: L. 93: Entire article added, p. 757, � 1, effective July 1, 1994.