Texas Business Organizations Code - Section 21.163. Issuance And Disposition Of Fractional Shares Or Scrip
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§ 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 or bearer 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.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 21.156 21.157 21.158 21.159 21.160 21.161 21.162 21.163 21.164 21.165 21.166 21.167 21.168 21.169 21.170
Last modified: August 11, 2007
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