Texas § 21.163 ISSUANCE AND DISPOSITION OF FRACTIONAL SHARES OR SCRIP.

Texas Statutes

§ 21.163 — ISSUANCE AND DISPOSITION OF FRACTIONAL SHARES OR SCRIP.

Texas § 21.163

Code BOBusiness Organizations Code

This text of Texas § 21.163 (ISSUANCE AND DISPOSITION OF FRACTIONAL SHARES OR SCRIP.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Business Organizations Code Code Ann. § 21.163 (2026).

Text

Sec. 21.163. ISSUANCE AND DISPOSITION OF FRACTIONAL SHARES OR SCRIP.

(a)A corporation may:

(1)issue fractions of a share, either certificated or uncertificated;

(2)arrange for the disposition of fractional interests by persons entitled to the interests;

(3)pay cash for the fair value of fractions of a share determined when the shareholders entitled to receive the fractions are determined; or

(4)subject to Subsection (b), issue scrip in registered form that entitles the holder to receive a certificate for a full share or an uncertificated full share on the surrender of the scrip aggregating a full share.

(b)The board of directors may issue scrip:

(1)on the condition that the scrip will become void if not exchanged for certificated or uncertificated full shares before a specified date

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Sec. 21.163. ISSUANCE AND DISPOSITION OF FRACTIONAL SHARES OR SCRIP. (a) A corporation may:
(1) issue fractions of a share, either certificated or uncertificated;
(2) arrange for the disposition of fractional interests by persons entitled to the interests;
(3) pay cash for the fair value of fractions of a share determined when the shareholders entitled to receive the fractions are determined; or
(4) subject to Subsection (b), issue scrip in registered form that entitles the holder to receive a certificate for a full share or an uncertificated full share on the surrender of the scrip aggregating a full share.
(b) The board of directors may issue scrip:
(1) on the condition that the scrip will become void if not exchanged for certificated or uncertificated full shares before a specified date;
(2) on the condition that the shares for which the scrip is exchangeable may be sold by the corporation and the proceeds from the sale of the shares may be distributed to the holders of scrip; or
(3) subject to any other condition the board of directors may determine advisable.

Legislative History

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2009, 81st Leg., R.S., Ch. 84 (S.B. 1442 ), Sec. 31, eff. September 1, 2009.