KRS 271B.6-040: Fractional shares.

(1) A corporation may:

(a) Issue fractions of a share or pay in money the value of fractions of a share;

(b) Arrange for disposition of fractional shares by the shareholders; and

(c) Issue scrip in registered or bearer form entitling the holder to receive a full

share upon surrendering enough scrip to equal a full share.

(2) Each certificate representing scrip shall be conspicuously labeled "scrip" and shall

contain the information required by subsection (2) of KRS 271B.6-250.

(3) The holder of a fractional share shall be entitled to exercise the rights of a

shareholder, including the right to vote, to receive dividends, and to participate in

the assets of the corporation upon liquidation. The holder of scrip shall not be

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

considered desirable, including:

(a) That the scrip will become void if not exchanged for full shares before a

specified date; and

(b) That the shares for which th e scrip is exchangeable may be sold and the

proceeds paid to the scripholders.