§ 48.08.020. Reduction of capital stock
(1) Reduction of the capital stock of a domestic stock insurer shall be by amendment of its articles of incorporation. No such reduction shall be made which results in capital stock less in amount than the minimum required by this code for the kinds of insurance thereafter to be transacted by the insurer.
(2) No surplus funds of the insurer resulting from a reduction of its capital stock shall be distributed to stockholders, except as a stock dividend on a subsequent increase of capital stock, or upon dissolution of the insurer, or upon approval of the commissioner of a distribution upon proof satisfactory to him that the distribution will not impair the interests of policyholders or the insurer's solvency.
(3) Upon such reduction of capital stock, the insurer's directors shall call in any outstanding stock certificates required to be changed pursuant thereto, and issue proper certificates in their stead.
[1947 c 79 § .08.02; Rem. Supp. 1947 § 45.08.02.]
Sections: Previous 48.08.010 48.08.020 48.08.030 48.08.040 48.08.050 48.08.060 48.08.070 48.08.080 48.08.090 48.08.100 48.08.110 48.08.120 48.08.130 48.08.140 48.08.150 NextLast modified: April 7, 2009