Texas Insurance Code
§ 826.056 — DIRECTORS AND OFFICERS
IN § 826.056Title 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
View on source(a)Except as otherwise provided by this section, the conversion plan must provide that a director or officer of the converting company, or a person acting in concert with a director or officer, may not acquire, without the permission of the commissioner, any capital stock of the resulting company or the stock of another corporation that is participating in the conversion plan before the third anniversary of the effective date of the conversion. This subsection does not prohibit a director or officer from:
(1)acquiring capital stock through a broker-dealer;
(2)making purchases through the exercise of subscription rights received under the conversion plan; or
(3)participating in a stock benefit plan permitted by Section 826.059 or approved by the eligible members under Section 826.107.
(b)A conversion plan may provide that the directors and officers of the converting company may receive, without payment, nontransferable subscription rights to purchase capital stock of the resulting company or the stock of another corporation that is participating in the conversion plan.
(c)The aggregate number of shares that may be purchased by directors and officers under Subsection (b) may not exceed:
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Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.