Ohio § 1701.24

Full text of Ohio Ohio Revised Code § 1701.24, with citation guidance and answers to common questions.

§ 1701.24.

(A) The shares of a corporation are personal property. (B) Unless the articles, the regulations adopted by the shareholders, or the regulations

adopted by the directors pursuant to division (A)(1) of section 1701.10 of the Revised Code provide otherwise, a holder of shares is entitled to one or more certificates, signed

by the chairperson of the board or the president or a vice-president and by the secretary,

an assistant secretary, the treasurer, or an assistant treasurer of the corporation,

that shall certify the number and class of shares held by the holder in the corporation,

but no certificate for shares shall be executed or delivered until those shares are

fully paid.  When the certificate is countersigned by an incorporated transfer agent or registrar,

the signature of any of those officers of the corporation may be facsimile, engraved,

stamped, or printed.  Although any officer of the corporation whose manual or facsimile signature is affixed

to the certificate ceases to be such officer before the certificate is delivered,

the certificate nevertheless shall be effective in all respects when delivered. (C) A corporation is not obligated to but may issue fractional shares.  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.  In the case of uncertificated securities, the corporation may proceed as provided

in divisions (C)(1) and (2) of this section.  In the case of certificated securities, the corporation may execute and deliver

a certificate for or including a fraction of a share or, in lieu thereof, may do any

of the following: (1) Pay to the person otherwise entitled to become a holder of a fraction of a share

an amount in cash specified as the value of the fraction of a share in the articles,

a resolution of the directors, or other agreement or instrument pursuant to which

that fraction of a share otherwise would be issued, or, if not so specified, then

the amount determined for that purpose by the directors of the issuing corporation,

or the amount realized upon sale of the fraction of a share; (2) Provide reasonable means to afford to the person the opportunity, on specified terms

and conditions, to purchase or sell fractional interests in shares, to the exclusion

of all rights the person otherwise might have; (3) Execute and deliver registered or bearer scrip over the manual or facsimile signature

of an officer of the corporation or of its agent for that purpose, exchangeable as

provided in the scrip for full shares, but such scrip shall not entitle the holder

to any rights as a shareholder except as provided in the scrip.  The scrip may provide that it shall become void unless the rights of the holders

are exercised within a specified period and may contain any other provisions that

the corporation deems advisable.  Whenever any such scrip ceases to be exchangeable for full shares, the shares that

otherwise would have been issuable as provided in the scrip shall be deemed to be

treasury shares unless the scrip contains other provision for their disposition. (D) A joint estate with the incidents of a joint estate as at common law, including the

right of survivorship, may be created in shares by registering the same in the case

of uncertificated securities, or by executing and delivering a certificate in the

case of certificated securities to two or more persons with the words “as joint tenants”

or “as joint tenants with right of survivorship and not as tenants in common” following

their names.  Upon receipt by the corporation of proof satisfactory to it of the death of one

or more joint tenants, it may register the transfer to, or execute and deliver a new

certificate to, the survivor or survivors. (E) Whenever a corporation has determined that any outstanding certificates for shares

should be canceled and exchanged for other certificates, the corporation may order

and require the holders of the outstanding certificates to surrender them for that

purpose within a reasonable time to be fixed by the corporation.  The order may provide that, until compliance with the order, any or all rights as

a shareholder of the holder of any certificate so required to be surrendered shall

be suspended with respect to the shares represented by the certificate.  Not less than ten days before the order is to become effective, the corporation

shall give notice of the order by mail to each shareholder affected by the order at

the shareholder's address as it appears on the records of the corporation. (F) The articles of a corporation, the regulations adopted by the shareholders of a corporation,

or the regulations adopted by the directors of a corporation pursuant to division (A)(1) of section 1701.10 of the Revised Code may provide that some or all of any or all classes and series of shares of that corporation

shall be uncertificated shares.  Unless otherwise provided by the articles or regulations, the directors may provide

by resolution that some or all of any or all classes and series of shares of a corporation

shall be uncertificated shares, provided that the resolution shall not apply to shares

represented by a certificate until the certificate is surrendered to the corporation

and that the resolution shall not apply to a certificated security issued in exchange

for an uncertificated security.  Within a reasonable time after the issuance or transfer of uncertificated shares,

the corporation shall send to the registered owner of the shares a written notice

containing the information required to be set forth or stated on certificates pursuant

to division (A) of section 1701.25 of the Revised Code .  Except as otherwise expressly provided by law, the rights and obligations of the

holders of uncertificated shares and the rights and obligations of the holders of

certificates representing shares of the same class and series shall be identical.

Frequently Asked Questions About Ohio § 1701.24

What does Ohio Revised Code § 1701.24 cover?

Section 1701.24 is part of the Ohio Revised Code, the codified statutory law of Ohio. 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 Ohio § 1701.24?

A common citation format is "Ohio Revised Code § 1701.24" (Ohio). 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 Ohio law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.

How does Ohio § 1701.24 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio 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 Ohio.