§ 23-1-26-4 — Share dividends and share splits

(a) Unless the articles of incorporation provide
otherwise, shares may be issued pro rata and without consideration to
the corporation's shareholders or to the shareholders of one (1) or more
classes or series. An issuance of shares under this subsection may be
in the form of a share dividend or a share split, but shall be considered
a share dividend for purposes of this article.
(b) Shares of one (1) class or series may not be issued as a share
dividend in respect of shares of another class or series unless:
(1) the articles of incorporation so authorize;
(2) a majority of the votes entitled to be cast by the class or series
to be issued approve the issue; or
(3) there are no outstanding shares of the class or series to be
issued.
(c) If the board of directors does not fix the record date for
determining shareholders entitled to a share dividend, it is the date the
board of directors authorizes the share dividend.

Legislative History

As added by P.L.149-1986, SEC.10.