KRS 271B.6-230: Share dividends.

(1) 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 (1) or more classes or series. An issuance of shares under this subsection shall

be considered a share dividend.

(2) Shares of one (1) class or series may not be issued as a share dividend in respect of

shares of another class or series unless:

(a) The articles of incorporation so authorize;

(b) A majority of the votes entitled to be cast by the class or series to be issued

approve the issue; or

(c) There are no outstanding shares of the class or series to be issued.

(3) If the board of directors does not fix the record date for determining shareholders

entitled to a share dividend, it shall be the date the board of directors authorizes the

share dividend.