HB 23-1297

House Bill 23-1297, which has been approved by the governor and will take effect on August 7, 2023, stops corporations in Colorado from issuing scrip (a type of substitute currency or token) that can be held without identifying the owner. This change aligns with federal law and affects how companies manage their share issuance processes. Once effective, corporations will no longer be able to issue bearer forms of scrip, meaning all shares must have identifiable owners rather than being anonymous tokens.

Official Summary

In conformance with federal law, the act repeals the allowance for a corporation to issue a scrip in bearer form upon the holder surrendering enough scrip to equal a full share. APPROVED by Governor June 7, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

Votes