Sec. 5911.
(1) The plan may provide that the directors and officers of the mutual company shall receive, without payment, subscription rights to purchase capital stock of the converted stock company or the stock of another corporation that is participating in the conversion plan, as provided in section 5905(1)(c)(i)(A), (B), or (C). These subscription rights shall be allocated among the directors and officers by a fair and equitable formula.
(2) The total number of shares that may be purchased under subsection (1) shall not exceed 25% of the total number of shares to be issued for a mutual company if total assets of the company are less than $50,000,000.00 or 15% of the total number of shares to be issued for a mutual company if total assets of the company are more than $500,000,000.00. For mutual companies with total assets of or between $50,000,000.00 and $500,000,000.00, the percentage of the total number of shares that may be purchased shall be interpolated.
(3) Stock purchased by a director or officer under subsection (1) may not be sold within 1 year after the effective date of the conversion.
History: Add. 1995, Act 215, Imd. Eff. Nov. 29, 1995 ;-- Am. 2000, Act 8, Imd. Eff. Feb. 25, 2000 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 500.5901 - Definitions.
Section 500.5904 - Plan of Conversion; Prohibited Conduct.
Section 500.5905 - Conversion Plan; Contents; Provisions Applicable to Subscription Rights.
Section 500.5907 - Conversion Plan; Provisions Applicable to Operation as Closed Block of Business.
Section 500.5911 - Receipt of Subscription Rights by Directors and Officers of Mutual Company.
Section 500.5913 - Allocation of Subscription Rights to Employee Benefit Plan.
Section 500.5917 - Effectiveness of Plan; Conditions.
Section 500.5925 - Validity of Actions.
Section 500.5927 - Petition to Waive Notice and Approval Requirements.