Indiana § 28-13-1-6 - Fractional shares; scrip; rights and preferences
Full text of Indiana Indiana Code § 28-13-1-6 — Fractional shares; scrip; rights and preferences, with citation guidance and answers to common questions.
§ 28-13-1-6. Fractional shares; scrip; rights and preferences
Sec. 6. (a) A corporation may do any 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 28-13-2-6(b).
(c) The holder of a fractional share is entitled to exercise the rights of a shareholder, including the right to do the following:
(1) Vote.
(2) Receive dividends.
(3) 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 the rights.
(d) The board of directors may authorize the issuance of scrip subject to any condition considered desirable, including the following:
(1) That the scrip will become void if not exchanged for full shares before a specified date.
(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.14-1992, SEC.163.
IC 28-13-2Chapter 2. Issuance of Shares
28-13-2-1Subscription for shares; terms; call for payment; nonassessable shares; default in payment 28-13-2-2Subscription agreement; powers of directors; consideration; escrowed or restricted shares for future services or benefits 28-13-2-3Shareholder liability for corporate acts or indebtedness 28-13-2-4Pro rata shares; share dividend or split; record date of dividend 28-13-2-5Purchase rights, options, or warrants; corporate shares or other securities 28-13-2-6Share certificates; contents; requisites; validity of signature 28-13-2-7Classes or series of shares without certificates; furnishing shareholder information 28-13-2-8Shares subject to registration or transfer restrictions; previously issued shares; enforcement of restrictions against holder or transferee 28-13-2-9Expenses payable from consideration received for shares
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 28-13-1-6
What does Indiana Code § 28-13-1-6 cover?
Section 28-13-1-6 ("Fractional shares; scrip; rights and preferences") 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 § 28-13-1-6?
A common citation format is "Indiana Code § 28-13-1-6" (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 § 28-13-1-6 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.