                                 CODE OF VIRGINIA

FRACTIONAL SHARES (§ 13.1-641)

A. Unless the articles of incorporation provide otherwise, a corporation may, if
authorized by its board of directors, issue fractions of a share or in lieu of
doing so may:

   1. Pay in cash the value of fractions of a share;

   2. Issue scrip in registered or bearer form entitling the holder to receive a
   full share upon surrendering enough scrip to equal a full share; or

   3. Arrange for disposition of fractional shares held by the shareholders.

B. Each certificate representing scrip shall be conspicuously labeled
&#8220;Scrip&#8221; and shall contain the applicable information required by
subsection B of &#xA7; 13.1-647.

C. The holder of a fractional share is entitled to exercise the rights of a
shareholder, including the rights to vote and to receive distributions,
including distributions upon dissolution. The holder of scrip is not entitled to
any rights of a shareholder unless the scrip provides for them.

D. The board of directors may authorize the issuance of scrip subject to any
condition, including that:

   1. The scrip will become void if not exchanged for full shares before a
   specified date; and

   2. The shares for which the scrip is exchangeable may be sold by the
   corporation and the proceeds paid to the scrip holders.

E. When a corporation is to pay in cash the value of fractions of a share such
value shall be determined by the board of directors. A good faith judgment of
the board of directors as to the value of a fractional share is conclusive.

HISTORY: Code 1950, § 13.1-21; 1956, c. 428; 1958, c. 564; 1966, c. 466; 1975,
c. 500; 1984, c. 613; 1985, c. 522; 2005, c. 765; 2019, c. 734.