Sec. 826.053. SALE OF CAPITAL STOCK. 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.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle B - Organization of Regulated Entities
Chapter 826 - Conversion of Mutual Insurance Company to Stock Insurance Company
Subchapter B. Conversion Plan Adoption and Requirements
Section 826.051. Plan Adoption
Section 826.052. General Requirements; Effect of Conversion on Policies
Section 826.053. Sale of Capital Stock
Section 826.054. Purchase Price of Capital Stock
Section 826.055. Limitation on Acquisition of Capital Stock
Section 826.056. Directors and Officers
Section 826.057. Rights of Holder of Surplus Notes
Section 826.058. Subscription Rights; General Provisions
Section 826.059. Subscription Rights; Tax-Qualified Employee Benefit Plan