56-18-111 - Procedure at policyholders' meeting to consider conversion Payment for shares by corporation.
56-18-111. Procedure at policyholders' meeting to consider conversion Payment for shares by corporation.
(a) The policyholders' meeting for the purpose of voting on the plan of mutualization shall be conducted in the manner provided in the mutualization plan; provided, that policyholders may vote in person, by proxy, or by mail and all votes shall be cast by ballot on a uniform ballot furnished by the corporation. The commissioner shall appoint no fewer than three (3) nor more than five (5) inspectors who shall observe the voting at the meeting and report to the commissioner as to the procedures employed at the meeting to verify the ballots, to ascertain their validity, and to establish the qualification of the voters. The inspectors shall canvass the vote in the presence of at least two (2) representatives named by the corporation, and shall certify to the commissioner and to the corporation the result of the vote. All necessary actual expenses, including reasonable per diem for the inspectors, incurred by the inspectors in performing the services, shall be paid by the corporation upon the certificate of the commissioner.
(b) Every payment for the acquisition of any shares of the capital stock of the corporation, the purchase price of which is not fixed by the plan, shall be subject to the approval of the commissioner. Neither the plan, nor any payment, shall be approved by the commissioner, unless at the time of the approvals, respectively, the corporation, after deducting the aggregate sum appropriated by the plan for the acquisition of any part or all of its capital stock, and in the case of any payment not fixed by the plan and subject to separate approval after the approval of the plan, after deducting also the amount of the payment, shall be possessed of assets sufficient to maintain its deposit theretofore made with the commissioner, and not less than the liabilities of the corporation required by law, including the net values of its outstanding contracts computed according to the standard adopted by the corporation under the applicable statutes of this state.
[Acts 1949, ch. 91, § 3; C. Supp. 1950, § 6433.15 (Williams, §§ 6433.18, 6433.19); T.C.A. (orig. ed.), § 56-1612.]