§ 4354. Eligibility Criteria
TITLE 4: ECONOMIC RESOURCES DIVISION 4: CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS § 4354. Share Dividends. (a) Unless the articles of incorporation provide otherwise, shares may be is- sued 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 in re- spect of 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 is- sued 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 share- holders entitled to a share dividend, it is the date the board of directors authorizes the share dividend. Source: PL 10-7, § 1 (Bus. Corp. Reg. § 6.23).
Source: CNMI Law Revision Commission