# 17 C.F.R. § 230.236 (2026): Exemption of shares offered in connection with certain transactions > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_236 ## Section - **Citation:** 17 C.F.R. § 230.236 (2026) - **Heading:** Exemption of shares offered in connection with certain transactions - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 17 CFR: Commodity and Securities Exchanges / Chapter II: SECURITIES AND EXCHANGE COMMISSION / Part 230: GENERAL RULES AND REGULATIONS, SECURITIES ACT OF 1933 / § 230.236: § 230.236 Exemption of shares offered in connection with certain transactions. ## Text Shares of stock or similar security offered to provide funds to be distributed to shareholders of the issuer of such securities in lieu of issuing fractional shares, script certificates or order forms, in connection with a stock dividend, stock split, reverse stock split, conversion, merger or similar transaction, shall be exempt from registration under the Act if the following conditions are met: (a) The issuer of such shares is required to file and has filed reports with the Commission pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934. (b) The aggregate gross proceeds from the sale of all shares offered in connection with the transaction for the purpose of providing such funds does not exceed $300,000. (c) At least ten days prior to the offering of the shares, the issuer shall furnish to the Commission in writing the following information: (1) That it proposes to offer shares in reliance upon the exemption provided by this rule; (2) the estimated number of shares to be so offered; (3) the aggregate market value of such shares as of the latest practicable date; and (4) a brief description of the transaction in connection with which the shares are to be offered. (Secs. 3, 4, and 19, 48 Stat. 75, 77, 85, as amended; 15 U.S.C. 77c, 77d, 77s; secs. 3(b), 4(l), 19(a), 48 Stat. 75, 77, 85; secs. 209, 48 Stat. 908; 59 Stat. 167; sec. 12, 78 Stat. 580; 84 Stat. 1480; sec. 308(a)(2), 90 Stat. 57; sec. 18, 92 Stat. 275; sec. 2, 92 Stat. 962; sec. 301, 94 Stat. 2291, 2294; secs. 12(a), 12(h), 12(i), 16(a), 23(a), 48 Stat. 892, 896, 901; sec. 203a, 49 Stat. 704; sec. 8, 49 Stat. 1379, secs. 3, 8, 78 Stat. 565-568, 579; sec. 1, 82 Stat. 454; sec. 105(b), 88 Stat. 1503; sec. 18, 89 Stat. 155; 15 U.S.C. 77c(b), 77d(l), 77s(a), 78 l (a), 78 l (h), 78 l (i), 78p(a), 78w(a)) [27 FR 3289, Apr. 6, 1962, as amended at 37 FR 22978, Oct. 27, 1972; 47 FR 29652, July 8, 1982; 61 FR 49959, Sept. 24, 1996] ## Nearby sections - [17 C.F.R. § 230.100 (2026) § 230.100 Definitions of terms used in the rules and regulations.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_100.md) - [17 C.F.R. § 230.110 (2026) § 230.110 Business hours of the Commission.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_110.md) - [17 C.F.R. § 230.111 (2026) § 230.111 Payment of filing fees.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_111.md) - [17 C.F.R. § 230.120 (2026) § 230.120 Inspection of registration statements.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_120.md) - [17 C.F.R. § 230.122 (2026) § 230.122 Non-disclosure of information obtained in the course of examinations and investigations.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_122.md) - [17 C.F.R. § 230.130 (2026) § 230.130 Definition of “rules and regulations” as used in certain sections of the Act.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_130.md) - [17 C.F.R. § 230.131 (2026) § 230.131 Definition of security issued under governmental obligations.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_131.md) - [17 C.F.R. § 230.132 (2026) § 230.132 Definition of “common trust fund” as used in section 3(a)(2) of the Act.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_132.md) - [17 C.F.R. § 230.133 (2026) § 230.133 Definition for purposes of section 5 of the Act, of “sale”, “offer”, “offer to sell”, and “offer for sale”.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_133.md) - [17 C.F.R. § 230.134 (2026) § 230.134 Communications not deemed a prospectus.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_134.md) - [17 C.F.R. § 230.134a (2026) § 230.134a Options material not deemed a prospectus.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_134a.md) - [17 C.F.R. § 230.134b (2026) § 230.134b Statements of additional information.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_134b.md) - [17 C.F.R. § 230.135 (2026) § 230.135 Notice of proposed registered offerings.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_135.md) - [17 C.F.R. § 230.135a (2026) § 230.135a Generic advertising.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_135a.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T17_P230_S230_236. 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