Texas Insurance Code

§ 826.053 — SALE OF CAPITAL STOCK

IN § 826.053Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part B. ORGANIZATION OF REGULATED ENTITIES · Ch. 826. CONVERSION OF MUTUAL INSURANCE COMPANY TO STOCK INSURANCE COMPANY · Art. B. CONVERSION PLAN ADOPTION AND REQUIREMENTS

Statute text

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A conversion plan must provide that shares of capital stock of the resulting company shall be sold in a private placement, public offering, or an alternative method approved by the commissioner unless the shares are:

(1)sold or distributed to a holder of surplus notes of the converting company; or

(2)subscribed to by:

(A)a tax-qualified employee benefit plan under Section 826.059;

(B)a director or officer under Section 826.056(b); or

(C)an eligible member exercising subscription rights under Section 826.058.

Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.