Authorized shares

(1) The articles of incorporation shall state the classes of shares and the number of shares of each class that the corporation is authorized to issue. If more than one class of shares is authorized, the articles of incorporation shall state a distinguishing designation for each class, and, before the issuance of shares of any class, the preferences, limitations, and relative rights of that class shall be stated in the articles of incorporation. All shares of a class shall have preferences, limitations, and relative rights identical with those of other shares of the same class except to the extent otherwise permitted by section 7-106-102. (2) The articles of incorporation shall authorize: (a) One or more classes of shares that together have unlimited voting rights; and (b) One or more classes of shares, which may be the same class or classes as those with voting rights, that together are entitled to receive the net assets of the corporation upon dissolution. (3) The articles of incorporation may authorize one or more classes of shares that: (a) Have special, conditional, or limited voting rights, or no right to vote; except that no condition, limitation, or prohibition on voting shall eliminate any right to vote provided by section 7-110-104; (b) Are redeemable or convertible as stated in the articles of incorporation: (I) At the option of the corporation, the shareholder, or another person or upon the occurrence of a designated event; (II) For money, indebtedness, securities, or other property; or (III) In a designated amount or in an amount determined in accordance with a designated formula or by reference to extrinsic facts or events; (c) Entitle the holders to distributions calculated in any manner, including dividends that may be cumulative, noncumulative, or partially cumulative; or (d) Have preference over any other class of shares with respect to distributions, including dividends and distributions upon the dissolution of the corporation. (4) The description of the preferences, limitations, and relative rights of classes of shares in subsection (3) of this section is not exhaustive.