2009 Iowa Code
Title 12 - Business Entities
Subtitle 2 - Business and Professional Corporations and Companies
CHAPTER 490 - BUSINESS CORPORATIONS
490.604 - FRACTIONAL SHARES.

        490.604  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.
         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 must be conspicuously
      labeled "scrip" and must contain the information required by section
      490.625, subsection 2.
         3.  The holder of a fractional share is 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 is not 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.
         b.  That the shares for which the scrip is exchangeable may be
      sold and the proceeds paid to the scrip holders.  

         89 Acts, ch 288, §39
         Referred to in § 534.508