Sec. 33-668. Fractional shares. - Connecticut Statutes

      Sec. 33-668. Fractional shares. (a) A corporation may: (1) Issue fractions of a share or pay in money the value of fractions of a share; (2) arrange for disposition of fractional shares by the shareholders; and (3) issue scrip in registered or bearer form entitling the holder to receive a full share upon surrendering enough scrip to equal a full share.

      (b) Each certificate representing scrip must be conspicuously labeled "scrip" and must contain the information required by subsection (b) of section 33-676.

      (c) The holder of a fractional share is entitled to exercise the rights of a shareholder, including the right to vote, to receive dividends and to participate in the assets of the corporation upon liquidation. The holder of scrip is not entitled to any of these rights unless the scrip provides for them.

      (d) The board of directors may authorize the issuance of scrip subject to any condition considered desirable, including: (1) That the scrip will become void if not exchanged for full shares before a specified date; and (2) that the shares for which the scrip is exchangeable may be sold and the proceeds paid to the scripholders.

      (P.A. 94-186, S. 42, 215; P.A. 96-271, S. 35, 254.)

      History: P.A. 94-186 effective January 1, 1997; P.A. 96-271 amended Subsec. (a) to add "and" prior to Subdiv. (3), effective January 1, 1997.

      Annotation to former section 33-346:

      Subsec. (a):

      Apparent recognition of fractional voting in section 33-311a(f) is limited to single situation where there is a deadlock among joint owners. An agreement among owners attempting to authorize fractional voting is invalid. 150 C. 232.