Sec. 829.005. CONFLICT OF INTEREST. (a) Except as provided by a conversion plan approved by the commissioner or by this section, the following individuals may not receive a fee, commission, stock distribution, stock subscription rights, or other consideration, other than that individual's usual salary or compensation for aiding, promoting, assisting, or participating in a conversion under this chapter:
(1) a director, officer, agent, or employee of a converting exchange or the exchange's attorney in fact; or
(2) the attorney in fact if the attorney in fact is an individual.
(b) Subsection (a) does not apply to consideration received in the individual's capacity as a member.
(c) This section does not prohibit the payment of reasonable fees and compensation to an attorney, accountant, or actuary for professional services performed by that person, without regard to whether the person is also a director or officer of the converting exchange or its attorney in fact.
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle B - Organization of Regulated Entities
Subchapter A. General Provisions
Section 829.002. Authority to Convert Through Creation of a Mutual Holding Company
Section 829.003. Rights and Privileges of Resulting Company; Laws Applicable
Section 829.004. Mutual Holding Company; Laws Applicable
Section 829.005. Conflict of Interest