Kentucky Statutes 304.37-575 – Prohibited practices
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The following practices are prohibited:
(1) Borrowing funds from the mutual insurance holding company, or its subsidiaries and affiliates, to finance the purchase of any portion of a stock offering;
(2) Payment of commissions, “special fees,” and any other special payment or extraordinary compensation to officers, directors, interested persons, and affiliates, for arranging, promoting, aiding, or assisting in reorganization to a mutual insurance holding company, or for arranging, promoting, aiding, assisting, or participating in the structuring and placement of a stock offering; and
(3) Entering into an understanding or agreement transferring legal or beneficial ownership of stock to another person in avoidance of these rules.
Effective: July 15, 1998
History: Created 1998 Ky. Acts ch. 546, sec. 16, effective July 15, 1998.
(1) Borrowing funds from the mutual insurance holding company, or its subsidiaries and affiliates, to finance the purchase of any portion of a stock offering;
Terms Used In Kentucky Statutes 304.37-575
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
(2) Payment of commissions, “special fees,” and any other special payment or extraordinary compensation to officers, directors, interested persons, and affiliates, for arranging, promoting, aiding, or assisting in reorganization to a mutual insurance holding company, or for arranging, promoting, aiding, assisting, or participating in the structuring and placement of a stock offering; and
(3) Entering into an understanding or agreement transferring legal or beneficial ownership of stock to another person in avoidance of these rules.
Effective: July 15, 1998
History: Created 1998 Ky. Acts ch. 546, sec. 16, effective July 15, 1998.