Texas Business Corporation Act - Article 2.20. Issuance Of Fractional Shares Or Scrip
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Art. 2.20. Issuance of Fractional Shares or Scrip
A. A corporation may (1) issue fractions of a share, either
represented by a certificate or uncertificated, (2) arrange for the
disposition of fractional interests by those entitled thereto, (3)
pay in cash the fair value of fractions of a share as of the time
when those entitled to receive such fractions are determined, or
(4) issue scrip in registered or bearer form which shall entitle the
holder to receive a certificate for a full share or an
uncertificated full share upon the surrender of such scrip
aggregating a full share. A certificate for a fractional share or
an uncertificated fractional share shall, but scrip shall not
unless otherwise provided therein, entitle the holder to exercise
voting rights, to receive dividends thereon, and to participate in
any of the assets of the corporation in the event of liquidation.
The board of directors may cause scrip to be issued subject to the
condition that it shall become void if not exchanged for
certificates representing full shares or uncertificated full
shares before a specified date, or subject to the condition that the
shares for which such scrip is exchangeable may be sold by the
corporation and the proceeds thereof distributed to the holders of
scrip, or subject to any other conditions which the board of
directors may determine advisable.
Acts 1955, 54th Leg., p. 239, ch. 64, eff. Sept. 6, 1955. Amended by
Acts 1973, 63rd Leg., p. 1492, ch. 545, Sec. 11, eff. Aug. 27, 1973;
Acts 1983, 68th Leg., p. 2566, ch. 442, Sec. 4, eff. Sept. 1, 1983.
Article: 2.13 2.14 2.14-1 2.15 2.16 2.18 2.19 2.20 2.21 2.22 2.22-1 2.23 2.24 2.25 2.25-1
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Last modified: August 10, 2007
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