Loading chat...
AL SB104
Bill
AI Summary
-
Amends Section 10A-2A-6.04 of the Alabama Code to revise requirements for corporations issuing or transferring fractional stock.
-
Prohibits corporations from issuing certificates representing scrip in bearer form; scrip must be in certificated or uncertificated registered form only.
-
Requires corporations to comply with notice requirements within a reasonable time after issuing or transferring scrip without a certificate.
-
Holders of fractional shares retain stockholder rights including voting, dividends, and dissolution distributions, while scrip holders have no rights unless the scrip explicitly provides for them.
-
Becomes effective on the first day of the third month following passage and Governor approval.
Legislative Description
Corporations, stock, issuance in fractional shores reg., issuance of scrip in bearer form prohibited, Sec. 10A-2A-6.04 am'd.
Corporations
Last Action
Assigned Act No. 2022-124.
3/3/2022