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Searching 2023-2024 Session

The Vermont Statutes Online

The Vermont Statutes Online have been updated to include the actions of the 2023 session of the General Assembly.

NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.

Title 11A : Vermont Business Corporations

Chapter 006 : Shares and Distributions

Subchapter 002 : Issuance of Shares

(Cite as: 11A V.S.A. § 6.23)
  • § 6.23. Share dividends

    (a) Unless the articles of incorporation provide otherwise, shares may be issued pro rata and without consideration to the corporation’s shareholders or to the shareholders of one or more classes or series. An issuance of shares under this subsection is a share dividend.

    (b) Shares of one class or series may not be issued as a share dividend on shares of another class or series unless:

    (1) the articles of incorporation so authorize;

    (2) a majority of the votes entitled to be cast by the class or series to be issued approve the issue; or

    (3) there are no outstanding shares of the class or series to be issued.

    (c) If the board of directors does not fix the record date for determining shareholders entitled to a share dividend, it is the date the board of directors authorizes the share dividend. (Added 1993, No. 85, § 2, eff. Jan. 1, 1994.)