1. A corporation may issue fractions of a share originally or upon transfer. If it does not issue fractions of a share, then it shall in connection with an original
issuance of shares:
a. Arrange for the disposition of fractional interests by those entitled to them;
b. Pay in money the fair value of fractions of a share as of the time when persons
entitled to receive the fractions are determined; or
c. Issue scrip or warrants in registered or bearer form that entitle the holder to
receive a certificate for a full share upon the surrender of the scrip or warrants
aggregating a full share.
2. A corporation may not pay money for fractional shares if that action would result
in the cancellation of more than twenty percent of the outstanding shares of a class
or series. A determination by the board of the fair value of fractions of a share is conclusive
in the absence of fraud. A certificated or uncertificated fractional share, and any scrip or warrants if
expressly provided, entitles the shareholder to exercise voting rights or receive
distributions. The board may cause scrip or warrants to be issued subject to the condition the
scrip or warrants become void if not exchanged for full shares before a specified
date, or that the shares for which scrip or warrants are exchangeable may be sold
by the corporation and the proceeds distributed to the holder of the scrip or warrants,
or to any other condition or set of conditions the board may impose.
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