# 17 CFR § 230.236: Exemption of shares offered in connection with certain transactions

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-17-230.236

## Section

- **Citation:** 17 CFR § 230.236
- **Heading:** Exemption of shares offered in connection with certain transactions
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 17—Commodity and Securities Exchanges > CHAPTER II—SECURITIES AND EXCHANGE COMMISSION > PART 230—GENERAL RULES AND REGULATIONS, SECURITIES ACT OF 1933 > Regulation A-R—Special Exemptions

## 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), 78l(a), 78l(h), 78l(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 CFR § 230.236 § 230.236 Exemption of shares offered in connection with certain transactions.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.236.md)
- [17 CFR § 230.237 § 230.237 Exemption for offers and sales to certain Canadian tax-deferred retirement savings accounts.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.237.md)
- [17 CFR § 230.238 § 230.238 Exemption for standardized options.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.238.md)
- [17 CFR § 230.239 § 230.239 Exemption for offers and sales of certain security-based swaps.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.239.md)
- [17 CFR § 230.240 § 230.240 Exemption for certain security-based swaps.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.240.md)
- [17 CFR § 230.241 § 230.241 Solicitations of interest.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.241.md)
- [17 CFR § 230.251 § 230.251 Scope of exemption.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.251.md)
- [17 CFR § 230.252 § 230.252 Offering statement.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.252.md)
- [17 CFR § 230.253 § 230.253 Offering circular.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.253.md)
- [17 CFR § 230.254 § 230.254 Preliminary offering circular.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.254.md)
- [17 CFR § 230.255 § 230.255 Solicitations of interest and other communications.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.255.md)
- [17 CFR § 230.256 § 230.256 Definition of “qualified purchaser”.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.256.md)
- [17 CFR § 230.257 § 230.257 Periodic and current reporting; exit report.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.257.md)
- [17 CFR § 230.258 § 230.258 Suspension of the exemption.](https://www.frixlaw.com/law-library/statutes/ecfr-17-230.258.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-17-230.236. Check the current official text before relying on it. Not legal advice.