44-238. Domestic stock company; change to mutual company; hearing; order; appeal.

294 words·~1 min read·/ne/chapter-44/44-238

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

If, upon the hearing, the Director of Insurance disapproves the plan, he or she shall enter a written order fully stating the reason therefor. If he or she approves the proposed plan and amendments, he or she shall

(1)make and enter an appropriate order approving them,

(2)make a finding that the provisions of the plan are in conformity with the requirements of sections 44-231 and 44-235 ,

(3)make a specific finding as to the fair value of the shareholders' interest in the company as of the date of the order,

(4)find the value of each shareholder's interest as represented by his or her shares therein and the amount to be paid therefor, and

(5)order that, conditioned upon the approval and adoption of the plan and amendments to the articles of incorporation by the shareholders at a regular or special meeting duly called for the purpose as provided in section 44-231 ,

(a)the plan shall be placed in effect,

(b)all shareholders of the company shall surrender their stock for cancellation pursuant to the plan and receive payment therefor in accordance therewith, and

(c)upon any shareholder's failing or neglecting to so surrender his or her stock, all of his or her rights, powers, and privileges as such shareholder shall nevertheless terminate and be extinguished, excepting only his or her right to receive payment for his or her stock. The order shall recite that appeal may be had and that the appeal shall be in accordance with the Administrative Procedure Act. A copy of the order, duly certified by the director, shall be promptly forwarded by mail to each of the shareholders of the company at his or her latest address as shown on the records of the company.