2006 Kentucky Revised Statutes - .010   Authorized shares.

271B.6-010 Authorized shares. (1) The articles of incorporation shall prescribe the classes of shares and the number of shares of each class that the corporation is authorized to issue. If more than one (1) class of shares is authorized, the articles of incorporation shall prescribe a distinguishing designation for each class, and, prior to the issuance of shares of a class, the preferences, limitations, and relative rights of that class must be described in the articles of incorporation. All shares of a class shall have preferences, limitations, and relative rights identical with those of other shares of the same class except to the extent otherwise permitted by KRS 271B.6-020. (2) The articles of incorporation shall authorize: (a)  One (1) or more classes of shares that together have unlimited voting rights; and (b)  One (1) or more classes of shares (which may be the same class or classes as those with voting rights) that together are entitled to receive the net assets of the corporation upon dissolution. (3) The articles of incorporation may authorize one (1) or more classes of shares that: (a)  Have special, conditional, or limited voting rights, or no right to vote, except to the extent prohibited by this chapter; (b)  Are redeemable or convertible as specified in the articles of incorporation: 1. At the option of the corporation, the shareholder, or another person or upon the occurrence of a designated event; 2. For cash, indebtedness, securities, or other property; or 3. In a designated amount or in an amount determined in accordance with a designated formula or by reference to extrinsic data or events; (c)  Entitle the holders to distributions calculated in any manner, including dividends that may be cumulative, noncumulative, or partially cumulative; or (d)  Have preference over any other class of shares with respect to distributions, including dividends and distributions upon the dissolution of the corporation. (4) The description of the designations, preferences, limitations, and relative rights of share classes in subsection (3) of this section shall not be considered exhaustive. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 23, sec. 33, effective January 1, 1989.