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CALIFORNIA CORPORATE & SECURITIES LAW

The Right To Dissent And Fractional Shares

I’ve devoted several posts to how California’s General Corporation Law deals with fractional shares.  Nevada’s approach to fractional shares is somewhat different.  For example, Nevada permits rounding up to a full share in all cases.  NRS 78.205(2)(b).  However, if a Nevada corporation elects to cash out or issue scrip for fractional shares, the stockholders may…

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Breaking Up Is Not Hard To Do – Fractions, Scrip And Scrippage

The California General Corporation Law explicitly authorizes a corporation to issue fractional shares.  Cal. Corp. Code § 407.  A corporation, however, is not required to do so.  Id.  In lieu of issuing fractions, a corporation may in connection with the original issuance: arrange for the disposition of fractional interests by those entitled to receive them;…

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