Sec. 33-674. Share dividends.
Sec. 33-674. Share dividends. (a) Unless the certificate of incorporation provides
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 certificate of incorporation so authorizes,
(2) a majority of the votes entitled to be cast by the class or series to be issued approve
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.
(P.A. 94-186, S. 46, 215; P.A. 96-271, S. 39, 254.)
History: P.A. 94-186 effective January 1, 1997; P.A. 96-271 replaced "articles" of incorporation with "certificate" of
incorporation where appearing, effective January 1, 1997.