(a) A corporation may provide in the articles of incorporation for one or more classes or series of

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Terms Used In Alaska Statutes 10.06.325

  • articles of incorporation: means the original or restated articles of incorporation and all amendments and includes articles of merger. See Alaska Statutes 10.06.990
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • board: means the board of directors of a domestic or foreign corporation. See Alaska Statutes 10.06.990
  • common shares: means shares that have no preference over other shares with respect to distribution of assets on liquidation or with respect to payment of dividends. See Alaska Statutes 10.06.990
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • preferred shares: means shares other than common shares. See Alaska Statutes 10.06.990
  • series of shares: means those shares within a class that have the same rights, preferences, privileges, and restrictions but that differ in one or more rights, preferences, privileges, or restrictions from other shares within the same class. See Alaska Statutes 10.06.990
  • shareholder: means a holder of record of a share in a corporation. See Alaska Statutes 10.06.990
  • shares: means the units into which the proprietary interests in a corporation are divided. See Alaska Statutes 10.06.990
  • vote: includes authorization by written consent subject to the provisions of Alaska Stat. See Alaska Statutes 10.06.990
(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 Alaska Stat. § 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 Alaska Stat. § 10.06.375, a corporation may not issue redeemable shares unless the shares are redeemable as provided in this section.
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