35-14-604. Fractional shares. (1) A corporation may issue fractions of a share or in lieu of doing so may:
(a) pay in cash the value of fractions of a share;
(b) issue scrip in registered or bearer form entitling the holder to receive a full share on surrendering enough scrip to equal a full share; or
(c) arrange for disposition of fractional shares by the holders of those shares.
(2) Each certificate representing scrip must be conspicuously labeled "scrip" and must contain the information required by 35-14-625(2).
(3) The holder of a fractional share is entitled to exercise the rights of a shareholder, including the rights to vote, to receive dividends, and to receive distributions upon dissolution. The holder of scrip is not 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, including that:
(a) the scrip will become void if not exchanged for full shares before a specified date; and
(b) the shares for which the scrip is exchangeable may be sold and the proceeds paid to the scripholders.
History: En. Sec. 49, Ch. 271, L. 2019.
Structure Montana Code Annotated
Title 35. Corporations, Partnerships, and Associations
Chapter 14. Montana Business Corporation Act
Part 6. Shares and Distributions
35-14-602. Terms of class or series -- determination by board of directors
35-14-603. Issued and outstanding shares
35-14-605. through 35-14-619 reserved
35-14-620. Subscription for shares -- before incorporation
35-14-622. Liability of shareholders
35-14-624. Share rights -- options -- warrants -- awards
35-14-625. Certificates -- form -- content
35-14-626. Shares without certificates
35-14-627. Restriction on transfer of shares
35-14-628. and 35-14-629 reserved
35-14-630. Preemptive rights -- shareholder
35-14-631. Corporation's acquisition of its own shares