§ 28-13-1-6 — Fractional shares; scrip; rights and preferences

(a) A corporation may do any 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 28-13-2-6(b).
(c) The holder of a fractional share is entitled to exercise the rights
of a shareholder, including the right to do the following:
(1) Vote.
(2) Receive dividends.
(3) 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 the rights.
(d) The board of directors may authorize the issuance of scrip
subject to any condition considered desirable, including the following:
(1) That the scrip will become void if not exchanged for full
shares before a specified date.
(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.14-1992, SEC.163.