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- Alaska Statutes.
- Title 10. Corporations and Associations
- Chapter 6. Alaska Corporations Code
- Section 542. Disparate Treatment of Shares of the Same Class or Series Prohibited; Exceptions.
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. Procedure For Share Exchange.
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. Notice to and Approval By Shareholders.
AS 10.06.542. Disparate Treatment of Shares of the Same Class or Series Prohibited; Exceptions.
- (a) Except as provided in (b) of this section all shares of the same class or series shall be treated equally with respect
to a distribution of shares, cash, property, rights, or securities in any plan of merger, consolidation, or share
- (b) Disparate treatment of shares of the same class or series may be proposed in a plan of merger, consolidation, or share
- (1) disparate treatment is necessary to preserve a subchapter S election under the Internal Revenue Code of 1954;
- (2) there is a sound business reason for disparate treatment and proponents of the plan prove it is consistent with
fiduciary duties owed to all shareholders; or
- (3) there is unanimous consent of all shareholders.
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