§ 55-6-04. Fractional shares. - North Carolina Statutes

§55‑6‑04.  Fractional shares.

(a)        A corporation may:

(1)        Issue fractions of ashare or pay in money the value of fractions of a share;

(2)        Arrange fordisposition of fractional shares by the shareholders;

(3)        Issue scrip inregistered or bearer form entitling the holder to receive a full share uponsurrendering enough scrip to equal a full share.

(b)        Each certificaterepresenting scrip must be conspicuously labeled "scrip" and mustcontain the information required by G.S. 55‑6‑25(b).

(c)        The holder of a fractionalshare is entitled to exercise the rights of a shareholder, including the rightto vote, to receive dividends, and to participate in the assets of thecorporation upon liquidation.  The holder of scrip is not entitled to any ofthese rights unless the scrip provides for them.

(d)        The board ofdirectors may authorize the issuance of scrip subject to any conditionconsidered desirable, including:

(1)        That the scrip willbecome void if not exchanged for full shares before a specified date; and

(2)        That the shares forwhich the scrip is exchangeable may be sold and the proceeds paid to thescripholders. (1955, c. 1371, s. 1; 1959, c. 1316, s. 20; 1989, c.265, s. 1.)