155. Fractions of shares.

A corporation may, but shall not be required to, issue fractions of a

share. If it does not issue fractions of a share, it shall (1) arrange for the
disposition of fractional interests by those entitled thereto, (2) pay in
cash the fair value of fractions of a share as of the time when those
entitled to receive such fractions are determined or (3) issue scrip or
warrants in registered form (either represented by a certificate or
uncertificated) or in bearer form (represented by a certificate) which
shall entitle the holder to receive a full share upon the surrender of
such scrip or warrants aggregating a full share. A certificate for a
fractional share or an uncertificated fractional share shall, but scrip or
warrants shall not unless otherwise provided therein, entitle the holder
to exercise voting rights, to receive dividends thereon and to
participate in any of the assets of the corporation in the event of
liquidation. The board of directors may cause scrip or warrants to be
issued subject to the conditions that they shall become void if not
exchanged for certificates representing the full shares or uncertificated
full shares before a specified date, or subject to the conditions that the
shares for which scrip or warrants are exchangeable may be sold by the
corporation and the proceeds thereof distributed to the holders of scrip
or warrants, or subject to any other conditions which the board of
directors may impose.-
http://delcode.delaware.gov/title8/c001/sc05/
Section 41. Power to acquire own shares. - A stock corporation shall have the
power to purchase or acquire its own shares for a legitimate corporate
purpose or purposes, including but not limited to the following cases:
Provided, That the corporation has unrestricted retained earnings in its books
to cover the shares to be purchased or acquired:
1. To eliminate fractional shares arising out of stock dividends;
2. To collect or compromise an indebtedness to the corporation, arising out of
unpaid subscription, in a delinquency sale, and to purchase delinquent shares
sold during said sale; and
3. To pay dissenting or withdrawing stockholders entitled to payment for
their shares under the provisions of this Code. (a) - Corporation Code of the
Philippines

Definition of 'Fractional Share'
A share of equity that is less than one full share. Fractional shares usually
come about from stock splits, dividend reinvestment plans (DRIPs) and
similar corporate actions. Normally, fractional shares cannot be acquired from
the market.
Investopedia explains 'Fractional Share'
Fractional shares can be created in a situation where a company has a 3-for-2
stock split. Suppose you have three shares of XYZ Corp. and XYZ has a 3-for-2
stock split. In this case, you should get an extra 1.5 shares, which would be 4.5
shares total. Normally, you can't buy half a share in the stock market, but in
this case, you could end up with a fractional share.

Most companies tend to round up to the nearest whole number of shares
when fractional shares occur. In the above example, XYZ Corp. could opt to
round up the 0.5 share to leave you with a full five shares. -
http://www.investopedia.com/terms/f/fractionalshare.asp

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