Sec. 826.055. LIMITATION ON ACQUISITION OF CAPITAL STOCK. (a) The conversion plan must provide that a person or group of persons acting in concert may not acquire, in the public or private offering or through the exercise of subscription rights, more than 10 percent of the capital stock of the resulting company except with the approval of the commissioner.
(b) This section does not apply to an entity that purchases 100 percent of the capital stock of the resulting company as part of the conversion plan approved by the commissioner.
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