Tex. Bus. Orgs. Code § 21.163 · Subchapter D. SHARES, OPTIONS, AND CONVERTIBLE SECURITIES
ISSUANCE AND DISPOSITION OF FRACTIONAL SHARES OR SCRIP.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A corporation may:
(1) issue fractions of a share, either certificated or uncertificated;
(2) arrange for the disposition of fractional interests by persons entitled to the interests;
(3) pay cash for the fair value of fractions of a share determined when the shareholders entitled to receive the fractions are determined; or
(4) subject to Subsection (b), issue scrip in registered form that entitles the holder to receive a certificate for a full share or an uncertificated full share on the surrender of the scrip aggregating a full share.
(b) The board of directors may issue scrip:
(1) on the condition that the scrip will become void if not exchanged for certificated or uncertificated full shares before a specified date;
(2) on the condition that the shares for which the scrip is exchangeable may be sold by the corporation and the proceeds from the sale of the shares may be distributed to the holders of scrip; or
(3) subject to any other condition the board of directors may determine advisable.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 84 (S.B. 1442), Sec. 31, eff. September 1, 2009.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm
- Text hash
- sha256 25a1b21805aecc411ff1a9bc4729b3434e747cb3f4548688d5f85779cce178e8
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.