2009 New Jersey Code
TITLE 14A - CORPORATIONS, GENERAL
Section 14A:7
14A:7-13 - Issuance of fractional shares or scrip

14A:7-13.  Issuance of fractional shares or scrip
    Unless otherwise provided in its certificate of incorporation, a corporation  may, but shall not be obliged to, issue fractions of a share and certificates  therefor.  By action of its board, a corporation may, in lieu of issuing  fractional shares, pay cash equal to the value of such fractional share, or  issue scrip in registered or bearer form which shall entitle the holder to  receive a certificate for a full share upon the surrender of such scrip  aggregating a full share.  A certificate for a fractional share shall entitle  the holder to exercise voting rights, to receive dividends thereon, and to  participate in any distribution of assets of the corporation in the event of  liquidation, but scrip shall not entitle the holder to exercise such voting  rights, receive dividends or participate in any such distribution of assets  unless such scrip shall so provide.  All scrip shall be issued subject to the  condition that it shall become void if not exchanged for certificates representing full shares before a specified date.  If such scrip is not so exchanged, the corporation shall either sell the shares for which such scrip was exchangeable and distribute the proceeds thereof pro rata to the holders of  such scrip, or pay, pro rata, to the holders of such scrip the market value of  the shares for which such scrip was exchangeable as of the day when such scrip  became void.

     L.1968, c.350; amended by L.1973, c. 366, s. 37, eff. May 1, 1974.