§ 7.2023. National bank reverse stock splits.
78 words·~1 min read·
/us/cfr/t12/s§ 7.2023·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Authority to engage in reverse stock splits. A national bank may engage in a reverse stock split if the transaction serves a legitimate corporate purpose and provides adequate dissenting shareholders' rights.
(b)Legitimate corporate purpose. Examples of legitimate corporate purposes include a reverse stock split to:
(1)Reduce the number of shareholders in order to qualify as a Subchapter S corporation; and
(2)Reduce costs associated with shareholder communications and meetings. [64 FR 60099, Nov. 4, 1999]