{"data":{"id":"us-nc/n.c.-gen.-stat.-55-6-04","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 55-6-04","heading":"Fractional shares.","body":"(a)\tA corporation may issue fractions of a share or, in lieu of doing so, may do any of the following:\n(1)\tPay in cash the value of fractions of a share.\n(2)\tDispose of the fractional shares and pay the proceeds to the holders of those shares.\n(3)\tIssue scrip in certificated or uncertificated form entitling the holder to receive a full share upon surrendering enough scrip to equal a full share.\n(b)\tEach certificate representing scrip shall be conspicuously labeled \"scrip\" and shall contain the information required by G.S. 55-6-25(b). A corporation shall not issue scrip certificates in bearer form. Within a reasonable time after the issuance or transfer of scrip without certificates, the corporation shall deliver to the scripholder a written statement of the information required on certificates by G.S. 55-6-25(b) and the terms of the scrip.\n(c)\tThe holder of a fractional share is entitled to exercise the rights of a shareholder, including the rights to vote, to receive dividends, and to receive distributions upon liquidation. The holder of scrip is not entitled to any of these rights unless the scrip provides for them.\n(d)\tThe board of directors may authorize the issuance of scrip subject to any condition considered desirable, including the following:\n(1)\tThe scrip will become void if not exchanged for full shares before a specified date.\n(2)\tThe shares for which the scrip is exchangeable may be sold and the proceeds paid to the scripholders. (1955, c. 1371, s. 1; 1959, c. 1316, s. 20; 1989, c. 265, s. 1; 2025-33, s. 4(a).)","path":["Chapter 55. North Carolina Business Corporation Act.","Article 6. Shares and Distribution.","Part 1. Shares."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_55/GS_55-6-04.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:05:57Z","sha256":"72143cf56da4068b0a3bb517714c49ef3b0c6cebbe7fbc0247b3d5bbe8569d3b","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-55-6-03","next":"us-nc/n.c.-gen.-stat.-55-6-05-through-55-6-19"},"notice":"GroundRules: Original legal text. Not legal advice."}