Indiana § 23-1-25-4 - Fractional shares; scrip
Full text of Indiana Indiana Code § 23-1-25-4 — Fractional shares; scrip, with citation guidance and answers to common questions.
§ 23-1-25-4. Fractional shares; scrip
Sec. 4. (a) A corporation may do any one (1) or more of the following:
(1) Issue fractions of a share or pay in money the value of fractions of a share.
(2) Arrange for disposition of fractional shares by the shareholders.
(3) Issue scrip in registered or bearer form entitling the holder to receive a full share upon surrendering enough scrip to equal a full share.
(b) Each certificate representing scrip must be conspicuously labeled "scrip" and must contain the information required by IC 23-1-26-6(b).
(c) 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.
(d) The board of directors may authorize the issuance of scrip subject to any condition considered desirable, including:
(1) that the scrip will become void if not exchanged for full shares before a specified date; and
(2) that the shares for which the scrip is exchangeable may be sold and the proceeds paid to the scripholders.
As added by P.L.149-1986, SEC.9.
IC 23-1-26Chapter 26. Issuance of Shares
23-1-26-1Subscription agreements 23-1-26-2Consideration 23-1-26-3Shareholder liability 23-1-26-4Share dividends and share splits 23-1-26-5Rights, options, or warrants 23-1-26-6Certificates; contents; signatures 23-1-26-7Issuance of shares without certificates 23-1-26-8Restrictions on transfer or registration of transfer of shares 23-1-26-9Expenses payable from consideration received for shares
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 23-1-25-4
What does Indiana Code § 23-1-25-4 cover?
Section 23-1-25-4 ("Fractional shares; scrip") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 23-1-25-4?
A common citation format is "Indiana Code § 23-1-25-4" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 23-1-25-4 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.