44-240. Domestic stock company; change to mutual company; plan; approval by policyholders.

173 words·~1 min read·/ne/chapter-44/44-240

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

Any plan for mutualization approved by the Director of Insurance shall be submitted to the policyholders of the company at a meeting held pursuant to the plan and shall be adopted only upon the affirmative vote of two-thirds of the policyholders present and voting in person or by proxy at the meeting as provided in the plan. The plan and amendments to the articles of incorporation shall also be submitted to the shareholders of the company as provided in section 44-231 , and upon affirmative vote of at least two-thirds of the shareholders, the plan shall be placed in full effect and operation and the amendments to the articles shall be deemed adopted to become fully effective upon filing at the time specified in the plan and as provided for in section 44-205 , and upon such filing being made, the company shall forthwith become and be a mutual insurance company for all purposes.

The company shall publish notice of the amendments to its articles of incorporation as provided in section 44-206 .