§ 23-1-25-4 — Fractional shares; scrip

(a) A corporation may do any one (1) or more
of the following:
(1) Issue fractions of a share or pay in money the value of
fractions of a share.
(2) Arrange for disposition of fractional shares by the
shareholders.
(3) Issue scrip in registered or bearer form entitling the holder to
receive a full share upon surrendering enough scrip to equal a full
share.
(b) Each certificate representing scrip must be conspicuously
labeled "scrip" and must contain the information required by IC 23-1-26-6(b).
(c) 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.
(d) The board of directors may authorize the issuance of scrip
subject to any condition considered desirable, including:
(1) that the scrip will become void if not exchanged for full shares
before a specified date; and
(2) that the shares for which the scrip is exchangeable may be
sold and the proceeds paid to the scripholders.

Legislative History

As added by P.L.149-1986, SEC.9.