Section 10.06.325. Redemption of shares; creation of sinking fund; repurchase agreements.

   (a) A corporation may provide in the articles of incorporation for one or more classes or series of
        (1) common shares that are redeemable, in whole or in part,
             (A) at the option of the corporation; or
             (B) to the extent and upon the happening of one or more specified events;
        (2) preferred shares that are redeemable, in whole or in part,
             (A) at the option of the corporation;
             (B) to the extent and upon the happening of one or more specified events;
             (C) at the option of the holder; or
             (D) upon the vote of at least a majority of the outstanding shares of the class or series to be redeemed.
   (b) Notwithstanding the other provisions of this section, an open-end investment company registered under the United States Investment Company Act of 1940 may, if its articles of incorporation so provide, issue shares that are redeemable at the option of the holder at a price approximately equal to the shares' proportionate interest in the net assets of the corporation, and a shareholder may compel redemption of the shares in accordance with their terms.
   (c) Nothing in this section prevents a corporation from creating a sinking fund or similar provision or entering into an agreement for the redemption or purchase of its shares to the extent permitted by this chapter.
   (d) Except as provided by AS 10.06.385, a redemption of shares shall be made at the price, within the time, and upon the terms and conditions stated in the articles. When the articles permit a partial redemption of a class or series of shares, the articles must prescribe the method of selecting the shares to be redeemed. The method of selection may be
        (1) pro rata;
        (2) by lot;
        (3) at the discretion of, or in a manner approved by, the board; or
        (4) upon other terms and conditions stated in the articles.
   (e) Notwithstanding the provisions of AS 10.06.375, a corporation may not issue redeemable shares unless the shares are redeemable as provided in this section.

Authorities

10.06.210;10.06.308

Notes

References

AS 10.06.210 Articles of incorporation; optional provisions.
AS 10.06.308 Issuance of preferred or special classes of shares.

History

(Sec. 1 ch 166 SLA 1988; am Sec. 2 - 4 ch 12 SLA 2000)