(a) A corporation may, but shall not be obliged to, issue a certificate for a fractional share and, by action of its board of directors, may issue, in lieu thereof, a scrip in registered or bearer form which shall entitle the holder to receive a certificate for a full share upon the surrender of such scrip aggregating a full share.
(b) A certificate for a fractional share shall, but scrip shall not unless otherwise provided therein, entitle the holder to exercise voting rights, to receive dividends thereon, and to participate in any of the assets of the corporation in the event of liquidation.
(c) The board of directors may cause such scrip to be issued subject to the condition that it shall become void if not tendered to be exchanged for certificates representing full shares before a specified date, or subject to the condition that the shares for which the scrip is exchangeable may be sold by the corporation and the proceeds thereof distributed to the holders of the scrip, or subject to any other conditions which the board of directors may deem advisable.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 3 - Corporations and Associations
Chapter 26 - Business Corporations Generally
Subchapter 6 - Corporate Finance
§ 4-26-601. Authorized shares generally — Preferred or special classes
§ 4-26-602. Shares of preferred or special classes — Issuance in series
§ 4-26-603. Subscriptions for shares
§ 4-26-604. Consideration for shares generally
§ 4-26-605. Payment for shares
§ 4-26-606. Payment of expenses of organization, reorganization, financing, etc
§ 4-26-607. Stated capital — Capital surplus — Earned surplus
§ 4-26-608. Signed certificates representing shares
§ 4-26-609. Issuance of fractional shares or scrip
§ 4-26-610. Restrictions on transfer of shares
§ 4-26-611. Acquisition or disposition of corporation's own shares
§ 4-26-612. Treasury shares — Cancellation
§ 4-26-613. Redeemable shares — Restrictions on redemption or purchase
§ 4-26-614. Redeemable shares — Cancellation by redemption or purchase
§ 4-26-615. Reduction of stated capital
§ 4-26-616. Surplus, net profits, and valuation of assets
§ 4-26-617. Dividends — General powers of board
§ 4-26-619. Dividends other than in shares of the corporation