Sec. 5218.
(1) A domestic stock property, marine, inland navigation and transportation, or automobile (limited) insurer may increase or decrease its capital stock in the manner herein provided. When any such insurer proposes to increase or decrease its capital stock it shall first present its petition to the commissioner, setting forth the reasons for such increase or decrease. The commissioner, if satisfied that the proposed increase or decrease is for the best interests of the insurer and its policyholders, and that no reasonable objection exists thereto, may authorize and approve the proposed plan of increase or decrease, or may direct such modification thereof as may seem proper.
(2) After the approval of the petition as aforesaid, such increase or decrease must be approved, and the articles of incorporation amended in this respect, by the affirmative vote of not less than 2/3 of the capital stock of the insurer, voting in person or by proxy, at a regular or special meeting of the stockholders, but notice of such meeting, reciting the purposes thereof, shall be served on each of the stockholders, either personally or by directing same through the post office to the last known post office address of such stockholder at least 3 weeks previous to such meeting.
(3) Such increase or decrease shall not become effective until finally approved by the commissioner, and until compliance is made with the requirements of section 5214.
(4) Whenever any insurer shall increase or decrease its capital stock as herein provided, the par value of its shares shall be fixed at not less than $1.00 nor more than $100.00 each, and the directors of the insurer shall have authority to make provision for calling in the old and issuing new certificates of stock.
History: 1956, Act 218, Eff. Jan. 1, 1957 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
Section 500.5200 - Applicability of Chapter.
Section 500.5202 - Life, Accident or Sickness Insurers; Reorganization Under Code.
Section 500.5204 - Companies Deemed Bodies Corporate and Politic; Corporation Law Applicable.
Section 500.5205 - Proof of Corporate Existence and Authority to Insure.
Section 500.5206 - Corporate Powers; Enumeration; Exercise by Board of Directors.
Section 500.5209 - Insurer's Name; Restrictions.
Section 500.5210 - Dealing in Commodities Prohibited; Exception.
Section 500.5214 - Articles of Incorporation; Amendment.
Section 500.5220 - Blank Forms for Amending Articles.
Section 500.5222 - Corporate Life; Extension.
Section 500.5224 - Corporate Life; Expiration, Liquidation.
Section 500.5228 - Bylaws; Adoption; Filing.
Section 500.5230 - Special Meetings of Stockholders or Members; Notice of Meetings.
Section 500.5232 - Voting Rights; Stockholders, Members, Proxies, Fiduciaries, Pledgees.
Section 500.5234 - Stockholders and Members; Voting Rights, Quorum.
Section 500.5236 - Voting Rights; Inspectors of Election.
Section 500.5239 - Repealed. 1988, Act 290, Eff. Jan. 1, 1989.
Section 500.5241 - Indemnification Against Expenses of Action, Suit, or Proceeding Generally.
Section 500.5242d - “Corporation” Defined for Purposes of MCL 500.5241 to 500.5242c.
Section 500.5243 - Repealed. 1988, Act 290, Eff. Jan. 1, 1989.
Section 500.5244 - Liability for Payment Under Invalid Law or Ordinance.
Section 500.5246 - Officers and Agents; Appointment, Removal, Bond.
Section 500.5248 - Directors, Officers, and Employees of Domestic Insurer; Compensation.
Section 500.5258 - Acknowledgments.
Section 500.5260 - Stock Certificates; Substitutions.
Section 500.5264 - Expenditures, Vouchers, and Affidavits.
Section 500.5266 - Dividends to Stockholders; General Provision.
Section 500.5267 - Dividends to Stockholders; Domestic Fire Insurance Company.
Section 500.5270 - Insurer's Rights as Stockholder in Other Corporations.
Section 500.5274 - Domestic Fire Insurance Company; Assessment of Stockholders.
Section 500.5280 - Domestic Mutual Insurer; Assets; Deficiency; Liability of Director.
Section 500.5282 - Domestic Stock Insurer; Statement of Beneficial Ownership of Equity Securities.
Section 500.5283c - Stock Purchase Plan; Limitations.
Section 500.5284 - Securities Not Owned; Sale; Failure to Deliver to Transferee; Exception.
Section 500.5285 - Nonapplication of Sections to Certain Transactions.
Section 500.5286 - Foreign or Domestic Arbitrage Transactions; Exemptions.
Section 500.5287 - Equity Security; Definition.
Section 500.5288 - Registered Equity Securities; Exemptions; Conditions.
Section 500.5289 - Insurance Commissioner; Regulatory Powers; Effect of Good Faith.
Section 500.5290 - Unlawful Solicitation; Use of Name to Solicit Proxies or Consents.