{"data":{"id":"us-ky/krs-271b.6-010","jurisdiction":"us-ky","citation":"KRS 271B.6-010","heading":"Authorized shares.","body":"(1) The articles of incorporation shall prescribe the classes of shares and series of\nshares within a class and the number of shares of each class and series that the\ncorporation is authorized to issue. If more than one (1) class or series of shares is\nauthorized, the articles of incorporation shall prescribe a distinguishing designation\nfor each class or series, and, prior to the issuance of shares of a class or series, the\npreferences, limitations, and relative rights of that class or series must be described\nin the articles of incorporation. All shares of a class shall have preferences,\nlimitations, and relative rights identical with those of other shares of the same class\nexcept to the extent otherwise permitted by KRS 271B.6-020.\n(2) The articles of incorporation shall authorize:\n(a) One (1) or more classes or series of shares that together have unlimited voting\nrights; and\n(b) One (1) or more classes or series of shares which may be the same class or\nclasses as those with voting rights, that together are en titled to receive the net\nassets of the corporation upon dissolution.\n(3) The articles of incorporation may authorize one (1) or more classes or series of\nshares that:\n(a) Have special, conditional, or limited voting rights, or no right to vote, except\nto the extent otherwise provided by this chapter;\n(b) Are redeemable or convertible as specified in the articles of incorporation:\n1. At the option of the corporation, the shareholder, or another person or\nupon the occurrence of a designated event;\n2. For cash, indebtedness, securities, or other property; or\n3. In a designated amount or in an amount determined in accordance with a\ndesignated formula or by reference to extrinsic data or events;\n(c) Entitle the holders to distributions calculated in any manner, including\ndividends that may be cumulative, noncumulative, or partially cumulative; or\n(d) Have preference over any other class or series of shares with respect to\ndistributions, including dividends and distributions upon the dissolution of the\ncorporation.\n(4) Terms of shares may be made dependent upon facts objectively ascertainable\noutside the articles of incorporation in accordance with KRS 271B.1-200(2).\n(5) The description of the designations, preferences, limitations, and relative rights of\nshare classes in subsection (3) of this section shall not be considered exhaustive.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=36648","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:18Z","sha256":"66bfd179220b5f6fe6b214d7a5ca6baad8d038dbe3a1c2688542c858199ab0c5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-271b.5-040","next":"us-ky/krs-271b.6-020"},"notice":"GroundRules: Original legal text. Not legal advice."}