Iowa Code 524.526 – Fractional shares
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1. A state bank incorporated as a stock corporation may issue fractions of a share or in lieu of doing so may do any of the following:
a. Pay in cash the value of fractions of a share.
b. Issue scrip in registered or bearer form entitling the holder to receive a full share upon surrendering enough scrip to equal a full share.
c. Arrange for disposition of fractional shares by the shareholders of the state bank.
Terms Used In Iowa Code 524.526
- Bank: means a corporation organized under this chapter, a national bank, a federal savings association, or an out-of-state bank. See Iowa Code 524.103
- Board: means the engineering and land surveying examining board provided by this chapter. See Iowa Code 542B.2
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Shareholder: means one who is a holder of record of shares in a state bank. See Iowa Code 524.103
- Shares: means the units into which the proprietary interests in a state bank incorporated as a stock corporation are divided. See Iowa Code 524.103
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- State bank: means any bank incorporated pursuant to the provisions of this chapter after January 1, 1970, and any "state bank" incorporated pursuant to the laws of this state and doing business as such on January 1, 1970, or a bank organized as a mutual corporation under this chapter. See Iowa Code 524.103
2. Each certificate representing scrip must be conspicuously labeled “scrip” and must contain the information required by section 524.523, subsection 2.
3. The holder of a fractional share or scrip is entitled to exercise the rights of a shareholder, including the rights to vote, to receive dividends, and to participate in the assets of the state bank upon liquidation, but only if the fractional share or scrip provides for such rights.
4. The board of directors may authorize the issuance of scrip subject to any condition, including either of the following:
a. That the scrip will become void if not exchanged for full shares before a specified date.
b. That the shares for which the scrip is exchangeable may be sold and the proceeds paid to the scrip holders.