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.
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.
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