Fractions of shares: Issuance; alternatives to issuance.
1. A corporation is not obligated to but may sign and deliver a certificate for or including a fraction of a share.
2. In lieu of signing and delivering a certificate for a fraction of a share, a corporation may:
(a) Pay to any person otherwise entitled to become a holder of a fraction of a share:
(1) The appraised value of that share if the appraisal was properly demanded pursuant to this chapter or chapter 92A of NRS; or
(2) If no appraisal was demanded or an appraisal was not properly demanded, an amount in cash specified for that purpose as the value of the fraction in the articles, plan of reorganization, plan of merger or exchange, resolution of the board of directors, or other instrument pursuant to which the fractional share would otherwise be issued, or, if not specified, then as may be determined for that purpose by the board of directors of the issuing corporation;
(b) Issue such additional fraction of a share as is necessary to increase the fractional share to a full share; or
(c) Sign and deliver registered or bearer scrip over the manual or facsimile signature of an officer of the corporation or of its agent for that purpose, exchangeable as provided on the scrip for full share certificates, but the scrip does not entitle the holder to any rights as a stockholder except as provided on the scrip. The scrip may provide that it becomes void unless the rights of the holders are exercised within a specified period and may contain any other provisions or conditions that the corporation deems advisable. Whenever any scrip ceases to be exchangeable for full share certificates, the shares that would otherwise have been issuable as provided on the scrip are deemed to be treasury shares unless the scrip contains other provisions for their disposition.
3. The provisions of this section do not prevent a person who holds a fractional share from disputing the appraised value of a share pursuant to NRS 92A.300 to 92A.500, inclusive, if the person is otherwise entitled to exercise such rights.
Last modified: February 26, 2006