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The Vermont Statutes Online
Title
11A
:
Vermont Business Corporations
Chapter
006
:
SHARES AND DISTRIBUTIONS
Subchapter
001
:
SHARES
§
6.01. Authorized shares
(a) The articles
of incorporation must prescribe the classes of shares and the number of shares
of each class that the corporation is authorized to issue. If more than one
class of shares is authorized, the articles of incorporation must prescribe a
distinguishing designation for each class and, prior to the issuance of shares
of a class, the preferences, limitations, and relative rights of that class
must be described in the articles of incorporation. All shares of a class must
have preferences, limitations, and relative rights identical with those of
other shares of the same class except to the extent otherwise permitted by
section 6.02 of this title.
(b) The articles
of incorporation must authorize
(1) one or more
classes of shares that together have unlimited voting rights; and
(2) one or more
classes of shares (which may be the same class or classes as those with voting
rights) that together are entitled to receive the net assets of the corporation
upon dissolution.
(c) The articles
of incorporation may authorize one or more classes of shares that:
(1) have
special, conditional, or limited voting rights, or no right to vote, except to
the extent prohibited by this act;
(2) are
redeemable or convertible as specified in the articles of incorporation;
(A) at the
option of the corporation, the shareholder, or another person or upon the
occurrence of a designated event;
(B) for cash,
indebtedness, securities, or other property;
(C) in a
designated amount or in an amount determined in accordance with a designated
formula or by reference to extrinsic data or events;
(3) entitle the
holders to distributions calculated in any manner, including dividends that may
be cumulative, noncumulative, or partially cumulative;
(4) have
preference over any other class of shares with respect to distributions,
including dividends and distributions upon the dissolution of the corporation.
(d) Terms of
shares may be made dependent upon facts objectively ascertainable outside the
articles of incorporation in accordance with subsection 1.20(j) of this title.
(e) Any of the
terms of shares may vary among holders of the same class or series so long as
such variations are expressly set forth in the articles of incorporation.
(f) The
description of the designations, preferences, limitations, and relative rights
of share classes in subsection (c) of this section is not exhaustive. (Added
1993, No. 85, § 2, eff. Jan. 1, 1994; amended 2007, No. 190 (Adj. Sess.), § 85,
eff. June 6, 2008.)