§ 7-1.2-610 - Fractional shares. - Rhode Island Statutes

SECTION 7-1.2-610

   § 7-1.2-610  Fractional shares. – (a) A corporation may:

   (1) Issue fractions of a share;

   (2) Arrange for the disposition of fractional interests bythose entitled to those interests;

   (3) Pay in cash the fair value of fractions of a share as ofthe time when those entitled to receive the fractions are determined; or

   (4) Issue scrip in registered or bearer form which entitlesthe holder to receive a certificate for a full share upon the surrender of thescrip aggregating a full share.

   (b) A certificate for a fractional share, but not scrip,entitles unless it otherwise provides, the holder to exercise voting rights, toreceive dividends on that share, and to participate in any of the assets of thecorporation in the event of liquidation. The board of directors may issue scripsubject to the condition that it becomes void if not exchanged for certificatesrepresenting full shares before a specified date, or subject to the conditionthat the shares for which scrip is exchangeable may be sold by the corporationand the proceeds from the sale distributed to the holders of scrip, or subjectto any other conditions which the board of directors deems advisable.