(1) A corporation may:
(a) Issue fractions of a share or pay in money the value of fractions of a share;
(b) Arrange for disposition of fractional shares by the shareholders; and
(c) Issue scrip in registered or bearer form entitling the holder to receive a full share upon surrendering enough scrip to equal a full share.
(2) Each certificate representing scrip shall be conspicuously labeled "scrip" and shall contain the information required by subsection (2) of KRS 271B.6-250.
(3) The holder of a fractional share shall be 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 shall not be entitled to any of these rights unless the scrip provides for them.
(4) The board of directors may authorize the issuance of scrip subject to any condition considered desirable, including:
(a) That the scrip will become void if not exchanged for full shares before a specified date; and
(b) That the shares for which the scrip is exchangeable may be sold and the proceeds paid to the scripholders. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 23, sec. 36, effective January 1, 1989.
Notes of Decisions
Shawnee Telecom Resources, Inc. v. Brown, 354 S.W.3d 542 (Ky. 2011).
“11-010 and KRS 271B.6-040, which authorize mergers and reverse stock splits the effect of which is to “cash out” a minority shareholder, a lack of liquidity is not the minority shareholder’s concern.”
Lerner v. Lerner Corp., 750 A.2d 709 (Md. Ct. Spec. App. 2000).
“§ 17-6405 (1999); Ky.Rev.Stat. Ann. § 271B.6-040 (Banks-Baldwin 1998); La.”
Brewer v. Lincoln Int'l Corp., 148 F. Supp. 2d 792 (W.D. Ky. 2000).
· cites it 9× “Reduces the number of shares owned by the shareholder to a fraction of a share if the fractional share so created is to be acquired for cash under KRS § 271B.6-040. The plaintiffs contend that the 400-for-l reverse stock split was a transaction governed by KRS § 271B.”
Lerner v. Lerner Corp., 750 A.2d 709 (Md. Ct. Spec. App. 2000).
“§ 17-6405 (1999); Ky. Rev.Stat. Ann. § 271B.6-040 (Banks-Baldwin 1998); La.”
— Ky. Rev. Stat. § 271B.6-040(3) — 1 case
Brewer v. Lincoln Int'l Corp., 148 F. Supp. 2d 792 (W.D. Ky. 2000).
“Reduces the number of shares owned by the shareholder to a fraction of a share if the fractional share so created is to be acquired for cash under KRS § 271B.6-040. The plaintiffs contend that the 400-for-l reverse stock split was a transaction governed by KRS § 271B.”
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