500.5028 Completion of organization; issuance of stock certificates; mutual corporation.
270 words·~1 min read·
/mi/chapter-500/500-5028A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
500.5028 Completion of organization; issuance of stock certificates; mutual corporation.
Sec. 5028.
(1)The incorporators shall, after the filing and approval of the required articles, proceed to the completion of organization of the proposed insurer.
(2)A stock corporation shall at once open its books of subscription to the capital stock, and a certificate of authority shall not be issued by the commissioner to the corporation until it has issued stock certificates representing the minimum capitalization under its articles of incorporation and has collected in cash both its minimum capital and any premium for surplus requirements. If capital stock is not subscribed and paid for as provided in this subsection within 1 year from the opening of the books, the corporation may only sell stock on petition to and consent by the commissioner. The commissioner, if public policy warrants, may extend this 1-year period for a period of 3 months and, after petition, for a second period of 3 months. If at the expiration of 18 months the corporation has not met the requirements of this subsection, the commissioner shall proceed to liquidate the corporation through receivership proceedings as prescribed by chapter 81.
(3)A mutual corporation shall at once open books to receive propositions and enter into agreements as specified in the chapter under which it intends to operate. The acquisition of members shall proceed for the length of time, and be subject to periods of time extension and liquidation proceedings, as provided in subsection (2).
History: 1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 2001, Act 182 , Imd. Eff. Dec. 21, 2001
Popular Name: Act 218