N.Y. Business Corporation Law § 509: Fractions of a share or scrip authorized

§ 509. Fractions of a share or scrip authorized.

(a) A corporation may, but shall not be obliged to, issue fractions of

a share either represented by a certificate or uncertificated, which

shall entitle the holder, in proportion to his fractional holdings, to

exercise voting rights, receive dividends and participate in liquidating

distributions.

(b) As an alternative, a corporation may pay in cash the fair value of

fractions of a share as of the time when those entitled to receive such

fractions are determined.

(c) As an alternative, a corporation may issue scrip in registered or

bearer form over the manual or facsimile signature of an officer of the

corporation or of its agent, exchangeable as therein provided for full

shares, but such scrip shall not entitle the holder to any rights of a

shareholder except as therein provided. Such scrip may be issued subject

to the condition that it shall become void if not exchanged for

certificates representing full shares or uncertificated full shares

before a specified date, or subject to the condition that the shares for

which such scrip is exchangeable may be sold by the corporation and the

proceeds thereof distributed to the holders of such scrip, or subject to

any other conditions which the board may determine.

(d) A corporation may provide reasonable opportunity for persons

entitled to fractions of a share or scrip to sell such fractions of a

share or scrip or to purchase such additional fractions of a share or

scrip as may be needed to acquire a full share.