32-1-340. Conversion of surplus and undivided profits to capital stock.
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/mt/title-32/chapter-1/part-3/32-1-340·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
32-1-340 . Conversion of surplus and undivided profits to capital stock.
(1)A bank having a surplus and undivided profits equal to or in excess of 50% of its capital stock may increase its capital stock by the issuance of new stock for a part of that surplus and undivided profits.
(2)The increase may be made by a vote of the stock, either at a regular annual stockholders' meeting or at a meeting called for that purpose in accordance with the bylaws of the corporation.
(3)All increases of capital stock made under this section must be accomplished in a manner conforming to the requirements of this chapter pertaining to surplus of banks when first incorporated.
(4)When a bank has voted to issue any stock as contemplated in this section, it shall certify that action to the department, which shall within 30 days approve or reject the plan. Departmental action is final, and written notice of the action must be given to the bank.