A corporation may, in its discretion, issue fractions of shares. If it does not issue the same, it shall:\n(1) Take steps so that those entitled to fractional interests dispose of them;\n(2) pay in cash the fair value of fractions of shares as of the time when those entitled to such fractions are determined, or\n(3) issue scrip or a warrant of fractional share in registered form (whether or not represented by a certificate) or in bearer form (represented by a certificate) entitling the holder to receive a full share upon the surrender of such scrip or warrants aggregating a full share.\nA certificate for a fractional share or an uncertificated fractional share (but no scrip or warrants, unless otherwise provided therein) shall entitle the holder to exercise voting rights, to receive dividends and to participate in any of the assets of the corporation in case of liquidation.\nThe board of directors may cause scrip or warrants to be issued conditioned on the same becoming void if they are not exchanged for certificates representing full shares or for uncertificated full shares before a specified period; or conditioned on the fact that the corporation can sell the shares for which are not exchanged for certificates representing full shares or for uncertificated full shares before a specified period; or conditioned on the fact that the corporation can sell the shares for which the scrip or warrants are exchangeable and the proceeds thereof distributed among the holders of scrip or warrants; or subject to any other conditions which the board of directors may deem proper to impose.\nHistory —Dec. 16, 2009, No. 164, § 5.05.
Puerto Rico Legal Code