TITLE 30

CORPORATIONS

CHAPTER 29

GENERAL BUSINESS CORPORATIONS

PART 6

SHARES AND DISTRIBUTIONS

30-29-624.  SHARE rights, OPTIONS, warrants, and awards. (a) A corporation may issue rights, options, or warrants for the purchase of shares or other securities of the corporation. The board of directors shall determine:

(1)  The terms and conditions upon which the rights, options, or warrants are issued; and

(2)  The terms, including the consideration for which the shares or other securities are to be issued. The authorization by the board of directors for the corporation to issue such rights, options, or warrants constitutes authorization of the issuance of the shares or other securities for which the rights, options, or warrants are exercisable.

(b)  The terms and conditions of such rights, options, or warrants may include restrictions or conditions that:

(1)  Preclude or limit the exercise, transfer or receipt of such rights, options, or warrants by any person or persons owning or offering to acquire a specified number or percentage of the outstanding shares or other securities of the corporation or by any transferee or transferees of any such person or persons; or

(2)  Invalidate or void such rights, options, or warrants held by any such person or persons or any such transferee or transferees.

(c)  The board of directors may authorize one (1) or more officers to:

(1)  Designate the recipients of rights, options, warrants, or other equity compensation awards that involve the issuance of shares; and

(2)  Determine, within an amount and subject to any other limitations established by the board of directors and, if applicable, the shareholders, the number of such rights, options, warrants, or other equity compensation awards and the terms of such rights, options, warrants, or awards to be received by the recipients, provided that an officer may not use such authority to designate himself or herself or any other persons as the board of directors may specify as a recipient of such rights, options, warrants, or other equity compensation awards.

History:

[30-29-624, added 2015, ch. 243, sec. 61, p. 913; am. 2019, ch. 90, sec. 35, p. 248.]