(a) Unless the articles of incorporation provide otherwise, shares may be issued pro rata and without consideration to the corporation's shareholders or to the shareholders of one or more classes or series. An issuance of shares under this subsection is a share dividend.
(b) Shares of one class or series may not be issued as a share dividend in respect of shares of another class or series unless (1) the articles of incorporation so authorize, (2) a majority of the votes entitled to be cast by the class or series to be issued approves the issue, or (3) there are no outstanding shares of the class or series to be issued.
(c) If the board of directors does not fix the record date for determining shareholders entitled to a share dividend, it is the date the board of directors authorizes the share dividend.
HISTORY: Derived from 1976 Code Section 33-9-160 [1962 Code Section 12-15.15; 1962 (52) 1996; 1981 Act No. 146, Section 2; Repealed, 1988 Act No. 444, Section 2]; 1988 Act No. 444, Section 2.
Structure South Carolina Code of Laws
Title 33 - Corporations, Partnerships and Associations
Chapter 6 - Shares And Distributions
Section 33-6-101. Authorized shares.
Section 33-6-102. Terms of class or series determined by board of directors.
Section 33-6-103. Issued and outstanding shares.
Section 33-6-104. Fractional shares.
Section 33-6-200. Subscription for shares before incorporation.
Section 33-6-210. Issuance of shares.
Section 33-6-220. Liability of shareholders.
Section 33-6-230. Share dividends.
Section 33-6-250. Form and content of certificates.
Section 33-6-260. Shares without certificates.
Section 33-6-270. Restriction on transfer or registration of shares or other securities.
Section 33-6-280. Expense of issue.
Section 33-6-300. Shareholders' preemptive rights.