§ 21-240 — Fractional shares

Nebraska § 21-240

• Jurisdiction: Nebraska
• Ch. 21: Corporations and Other Companies

Text

(MBCA 6.04) (a) A corporation may:
(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; and
(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 subsection (b) of section 21-246 .
(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

Source: Laws 2014, LB749, § 40.