Texas Insurance Code
§ 829.053 — DIRECTORS AND OFFICERS
IN § 829.053Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part B. ORGANIZATION OF REGULATED ENTITIES · Ch. 829. CONVERSION OF RECIPROCAL OR INTERINSURANCE EXCHANGE TO STOCK COMPANY THROUGH CREATION OF A MUTUAL HOLDING COMPANY · Art. B. MUTUAL HOLDING COMPANY STRUCTURE
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 exchange, or a person acting in concert with the director or officer, may not acquire, without the permission of the commissioner, any shares of the capital stock of the resulting company, or the shares of the capital 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 the director or officer from:
(1)acquiring capital stock through a broker-dealer;
(2)making purchases through the exercise of stock subscription rights received under the conversion plan; or
(3)participating in a stock benefit plan permitted by Section 829.054 or approved by the eligible members under Section 829.107.
(b)A conversion plan may provide that the directors and officers of the converting exchange may receive, without payment, nontransferable subscription rights to purchase shares of the capital stock of the resulting company or the shares of the capital 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 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.