Subchapter III. Conduct of Internal Corporate Affairs
§ 1530. Bylaws.
A corporation established under this chapter may adopt bylaws for the proper management of its affairs, and may establish
regulations controlling the assignment and transfer of its shares. The first set of bylaws shall be adopted at the organizational
meeting, as provided in § 1515 of this title, but thereafter the power to make, alter or repeal bylaws shall be in the stockholders
provided that any corporation may, in the articles of association, confer that power upon the directors.
70 Del. Laws, c. 112, § 77.;
§ 1531. Directors.
(a) The business of every corporation organized under this chapter shall be managed by a board of directors. The number of
directors which shall constitute the whole board shall be such as may be specified in the articles of association, but in
no case shall the number be less than 5. The bylaws shall prescribe how many directors shall constitute a quorum for the transaction
of business.
(b) The directors elected at the organizational meeting, as provided in § 1515 of this title, shall hold office until the
succeeding annual meeting of the stockholders and until their successors have been duly chosen and qualified, and thereafter
shall be elected at the annual meeting of the stockholders or at an adjournment of the annual meeting. Vacancies in the board
of directors shall be filled by a majority of the remaining directors, though less than a quorum, and the directors so chosen
shall hold office until the next annual election and until their successors shall be duly elected and qualified.
(c) Every director shall be sworn to the faithful performance of duties.
70 Del. Laws, c. 112, § 77; 70 Del. Laws, c. 186, § 1.;
§ 1532. Stockholders' meetings.
(a) Meetings of stockholders (except the meeting of incorporators referred to in § 1515 of this title) shall be held at such
place either within or without this State as may be designated by or in the manner provided in the bylaws or if not so designated,
at the office of the corporation in this State. The bylaws shall fix the time of the annual meeting and may provide for special
or called meetings of stockholders.
(b) Any meeting of the stockholders may be adjourned and at such adjourned meeting, any business may be transacted that could
have been acted on at the meeting which was adjourned.
70 Del. Laws, c. 112, § 77.;
§ 1533. Voting rights of stockholders.
Each stockholder shall at every meeting of the stockholders be entitled to 1 vote in person or by proxy for each share of
the capital stock held by such stockholder on all issues on which such stockholder is entitled to vote. No stock shall be
voted which shall have been transferred on the books of the corporation within 20 days next preceding the stockholders meeting.
70 Del. Laws, c. 112, § 77.;
§ 1534. Par value of capital stock; payment for and issuance thereof; increase and reduction in such stock.
The capital stock shall be divided into shares of a stated par value. No business shall be transacted by the corporation until
the whole amount of its capital stock is subscribed for and actually paid in cash. No stock shall be issued by any corporation
until the par value thereof shall be fully paid in cash. Any corporation may, subject to the approval of the State Bank Commissioner,
increase or reduce its capital stock in the manner hereinafter provided.
70 Del. Laws, c. 112, § 77.;
§ 1535. Stockholders' liability.
The private property of the stockholders shall not be subject to the payment of the corporate debts unless expressly otherwise
provided in the articles of association.
70 Del. Laws, c. 112, § 77.;
§ 1536. Dividends.
The directors of a credit card institution may declare dividends on common or preferred stock of so much of the net profits
of the corporation as they shall judge expedient; but the corporation shall, before the declaration of a dividend from the
net profits, carry 50% of its net profits of the preceding period for which the dividend is paid to its surplus fund until
the same shall amount to 50% of its capital stock; and thereafter shall carry 25% of its net profits of the preceding period
for which the dividend is paid to its surplus fund until the same shall amount to 100% of its capital stock.
70 Del. Laws, c. 112, § 77.;
§ 1537. Amendment of charter or certificate of incorporation.
(a) Credit card institutions created by or under this Code shall hereafter amend their charters or certificates of incorporation
by and under this section.
(b) Any credit card institution created under this chapter may, from time to time, when and as desired, amend its charter
or certificate of incorporation by addition to its corporate powers and purposes, or diminution thereof, or both (provided
such additional corporate power or purpose be such as is authorized or contemplated under any of the provisions of this chapter);
or by increasing or decreasing its authorized capital stock (provided that such increase or decrease be expressly approved
by the State Bank Commissioner); by changing the number or par value of its shares of stock; or by changing its corporate
title (provided that the words "savings" or "trust" shall not be used in the amended title); and by increasing or decreasing
its number of directors (provided that in no case shall the whole number of directors be less than 5). Any or all such changes
or alterations may be effected by 1 certificate of amendment. No amendment shall contain a provision which would not have
been lawful and proper to insert in an original certificate of incorporation granted or issued under this chapter.
(c) The procedure for amendment and the manner of making and effecting the same shall be as prescribed in Chapter 1 of Title
8 for the amendment of the certificate of incorporation of a corporation having a capital stock. No certificate of amendment
shall be received or filed by the Secretary of State or be deemed or held to be effective unless and until the proposed certificate
of amendment shall have been submitted to the State Bank Commissioner and shall have been approved both in substance and in
form by said Commissioner.
(d) Notwithstanding any of the provisions of this section, a credit card institution created under this chapter may adopt
such amendments to its certificate of incorporation as are necessary to permit such credit card institution to comply with
the provisions governing the conversion of a credit card institution charter pursuant to § 793 of this title.
70 Del. Laws, c. 112, § 77; 71 Del. Laws, c. 19, § 61.;
§ 1538. Merger and consolidation -- Authorized; procedure.
Subject to § 1539 of this title, no corporation created under this chapter may merge or consolidate with any other corporation
or entity except that any 2 or more corporations created under this chapter may merge or consolidate into a single corporation
which shall be any 1 of the merging or consolidating credit card institutions. The procedure for the merger or consolidation
of such corporations and the legal effect of any such merger or consolidation and the manner of making and effecting the same
shall be as prescribed in Chapter 1 of Title 8 for the merger or consolidation of 2 or more corporations organized under that
chapter. No agreement of merger or consolidation of corporations created under this chapter shall be received or filed by
the Secretary of State or be deemed or held to be effective unless and until the proposed agreement of merger or consolidation
shall have been submitted to the State Bank Commissioner and shall have been approved both in substance and in form by the
State Bank Commissioner.
70 Del. Laws, c. 112, § 77.;
§ 1539. Same -- Acquisition of assets and assumption of liabilities; Commissioner's approval; title to property.
(a) No corporation organized under this chapter shall merge or consolidate with any other such corporation and no one shall
take over any substantial portion of the assets of and/or assume a substantial portion of the liabilities, in whole or in
part, of any such corporation (whether such corporation is then doing business or has ceased to do business or has surrendered
its charter or has dissolved) unless and until such action shall be approved by the State Bank Commissioner.
(b) The Commissioner may require that the Commissioner be furnished with such information as to the assets and liabilities
and as to the condition of the credit card institutions concerned as the Commissioner deems necessary or proper to determine
whether to give or withhold the Commissioner's approval.
(c) The State Bank Commissioner shall refuse approval whenever in the Commissioner's opinion the transaction will weaken any
credit card institution concerned.
(d) No title to any property shall pass where the transaction is in violation of this section.
Subchapter III. Conduct of Internal Corporate Affairs
§ 1530. Bylaws.
A corporation established under this chapter may adopt bylaws for the proper management of its affairs, and may establish
regulations controlling the assignment and transfer of its shares. The first set of bylaws shall be adopted at the organizational
meeting, as provided in § 1515 of this title, but thereafter the power to make, alter or repeal bylaws shall be in the stockholders
provided that any corporation may, in the articles of association, confer that power upon the directors.
70 Del. Laws, c. 112, § 77.;
§ 1531. Directors.
(a) The business of every corporation organized under this chapter shall be managed by a board of directors. The number of
directors which shall constitute the whole board shall be such as may be specified in the articles of association, but in
no case shall the number be less than 5. The bylaws shall prescribe how many directors shall constitute a quorum for the transaction
of business.
(b) The directors elected at the organizational meeting, as provided in § 1515 of this title, shall hold office until the
succeeding annual meeting of the stockholders and until their successors have been duly chosen and qualified, and thereafter
shall be elected at the annual meeting of the stockholders or at an adjournment of the annual meeting. Vacancies in the board
of directors shall be filled by a majority of the remaining directors, though less than a quorum, and the directors so chosen
shall hold office until the next annual election and until their successors shall be duly elected and qualified.
(c) Every director shall be sworn to the faithful performance of duties.
70 Del. Laws, c. 112, § 77; 70 Del. Laws, c. 186, § 1.;
§ 1532. Stockholders' meetings.
(a) Meetings of stockholders (except the meeting of incorporators referred to in § 1515 of this title) shall be held at such
place either within or without this State as may be designated by or in the manner provided in the bylaws or if not so designated,
at the office of the corporation in this State. The bylaws shall fix the time of the annual meeting and may provide for special
or called meetings of stockholders.
(b) Any meeting of the stockholders may be adjourned and at such adjourned meeting, any business may be transacted that could
have been acted on at the meeting which was adjourned.
70 Del. Laws, c. 112, § 77.;
§ 1533. Voting rights of stockholders.
Each stockholder shall at every meeting of the stockholders be entitled to 1 vote in person or by proxy for each share of
the capital stock held by such stockholder on all issues on which such stockholder is entitled to vote. No stock shall be
voted which shall have been transferred on the books of the corporation within 20 days next preceding the stockholders meeting.
70 Del. Laws, c. 112, § 77.;
§ 1534. Par value of capital stock; payment for and issuance thereof; increase and reduction in such stock.
The capital stock shall be divided into shares of a stated par value. No business shall be transacted by the corporation until
the whole amount of its capital stock is subscribed for and actually paid in cash. No stock shall be issued by any corporation
until the par value thereof shall be fully paid in cash. Any corporation may, subject to the approval of the State Bank Commissioner,
increase or reduce its capital stock in the manner hereinafter provided.
70 Del. Laws, c. 112, § 77.;
§ 1535. Stockholders' liability.
The private property of the stockholders shall not be subject to the payment of the corporate debts unless expressly otherwise
provided in the articles of association.
70 Del. Laws, c. 112, § 77.;
§ 1536. Dividends.
The directors of a credit card institution may declare dividends on common or preferred stock of so much of the net profits
of the corporation as they shall judge expedient; but the corporation shall, before the declaration of a dividend from the
net profits, carry 50% of its net profits of the preceding period for which the dividend is paid to its surplus fund until
the same shall amount to 50% of its capital stock; and thereafter shall carry 25% of its net profits of the preceding period
for which the dividend is paid to its surplus fund until the same shall amount to 100% of its capital stock.
70 Del. Laws, c. 112, § 77.;
§ 1537. Amendment of charter or certificate of incorporation.
(a) Credit card institutions created by or under this Code shall hereafter amend their charters or certificates of incorporation
by and under this section.
(b) Any credit card institution created under this chapter may, from time to time, when and as desired, amend its charter
or certificate of incorporation by addition to its corporate powers and purposes, or diminution thereof, or both (provided
such additional corporate power or purpose be such as is authorized or contemplated under any of the provisions of this chapter);
or by increasing or decreasing its authorized capital stock (provided that such increase or decrease be expressly approved
by the State Bank Commissioner); by changing the number or par value of its shares of stock; or by changing its corporate
title (provided that the words "savings" or "trust" shall not be used in the amended title); and by increasing or decreasing
its number of directors (provided that in no case shall the whole number of directors be less than 5). Any or all such changes
or alterations may be effected by 1 certificate of amendment. No amendment shall contain a provision which would not have
been lawful and proper to insert in an original certificate of incorporation granted or issued under this chapter.
(c) The procedure for amendment and the manner of making and effecting the same shall be as prescribed in Chapter 1 of Title
8 for the amendment of the certificate of incorporation of a corporation having a capital stock. No certificate of amendment
shall be received or filed by the Secretary of State or be deemed or held to be effective unless and until the proposed certificate
of amendment shall have been submitted to the State Bank Commissioner and shall have been approved both in substance and in
form by said Commissioner.
(d) Notwithstanding any of the provisions of this section, a credit card institution created under this chapter may adopt
such amendments to its certificate of incorporation as are necessary to permit such credit card institution to comply with
the provisions governing the conversion of a credit card institution charter pursuant to § 793 of this title.
70 Del. Laws, c. 112, § 77; 71 Del. Laws, c. 19, § 61.;
§ 1538. Merger and consolidation -- Authorized; procedure.
Subject to § 1539 of this title, no corporation created under this chapter may merge or consolidate with any other corporation
or entity except that any 2 or more corporations created under this chapter may merge or consolidate into a single corporation
which shall be any 1 of the merging or consolidating credit card institutions. The procedure for the merger or consolidation
of such corporations and the legal effect of any such merger or consolidation and the manner of making and effecting the same
shall be as prescribed in Chapter 1 of Title 8 for the merger or consolidation of 2 or more corporations organized under that
chapter. No agreement of merger or consolidation of corporations created under this chapter shall be received or filed by
the Secretary of State or be deemed or held to be effective unless and until the proposed agreement of merger or consolidation
shall have been submitted to the State Bank Commissioner and shall have been approved both in substance and in form by the
State Bank Commissioner.
70 Del. Laws, c. 112, § 77.;
§ 1539. Same -- Acquisition of assets and assumption of liabilities; Commissioner's approval; title to property.
(a) No corporation organized under this chapter shall merge or consolidate with any other such corporation and no one shall
take over any substantial portion of the assets of and/or assume a substantial portion of the liabilities, in whole or in
part, of any such corporation (whether such corporation is then doing business or has ceased to do business or has surrendered
its charter or has dissolved) unless and until such action shall be approved by the State Bank Commissioner.
(b) The Commissioner may require that the Commissioner be furnished with such information as to the assets and liabilities
and as to the condition of the credit card institutions concerned as the Commissioner deems necessary or proper to determine
whether to give or withhold the Commissioner's approval.
(c) The State Bank Commissioner shall refuse approval whenever in the Commissioner's opinion the transaction will weaken any
credit card institution concerned.
(d) No title to any property shall pass where the transaction is in violation of this section.
Subchapter III. Conduct of Internal Corporate Affairs
§ 1530. Bylaws.
A corporation established under this chapter may adopt bylaws for the proper management of its affairs, and may establish
regulations controlling the assignment and transfer of its shares. The first set of bylaws shall be adopted at the organizational
meeting, as provided in § 1515 of this title, but thereafter the power to make, alter or repeal bylaws shall be in the stockholders
provided that any corporation may, in the articles of association, confer that power upon the directors.
70 Del. Laws, c. 112, § 77.;
§ 1531. Directors.
(a) The business of every corporation organized under this chapter shall be managed by a board of directors. The number of
directors which shall constitute the whole board shall be such as may be specified in the articles of association, but in
no case shall the number be less than 5. The bylaws shall prescribe how many directors shall constitute a quorum for the transaction
of business.
(b) The directors elected at the organizational meeting, as provided in § 1515 of this title, shall hold office until the
succeeding annual meeting of the stockholders and until their successors have been duly chosen and qualified, and thereafter
shall be elected at the annual meeting of the stockholders or at an adjournment of the annual meeting. Vacancies in the board
of directors shall be filled by a majority of the remaining directors, though less than a quorum, and the directors so chosen
shall hold office until the next annual election and until their successors shall be duly elected and qualified.
(c) Every director shall be sworn to the faithful performance of duties.
70 Del. Laws, c. 112, § 77; 70 Del. Laws, c. 186, § 1.;
§ 1532. Stockholders' meetings.
(a) Meetings of stockholders (except the meeting of incorporators referred to in § 1515 of this title) shall be held at such
place either within or without this State as may be designated by or in the manner provided in the bylaws or if not so designated,
at the office of the corporation in this State. The bylaws shall fix the time of the annual meeting and may provide for special
or called meetings of stockholders.
(b) Any meeting of the stockholders may be adjourned and at such adjourned meeting, any business may be transacted that could
have been acted on at the meeting which was adjourned.
70 Del. Laws, c. 112, § 77.;
§ 1533. Voting rights of stockholders.
Each stockholder shall at every meeting of the stockholders be entitled to 1 vote in person or by proxy for each share of
the capital stock held by such stockholder on all issues on which such stockholder is entitled to vote. No stock shall be
voted which shall have been transferred on the books of the corporation within 20 days next preceding the stockholders meeting.
70 Del. Laws, c. 112, § 77.;
§ 1534. Par value of capital stock; payment for and issuance thereof; increase and reduction in such stock.
The capital stock shall be divided into shares of a stated par value. No business shall be transacted by the corporation until
the whole amount of its capital stock is subscribed for and actually paid in cash. No stock shall be issued by any corporation
until the par value thereof shall be fully paid in cash. Any corporation may, subject to the approval of the State Bank Commissioner,
increase or reduce its capital stock in the manner hereinafter provided.
70 Del. Laws, c. 112, § 77.;
§ 1535. Stockholders' liability.
The private property of the stockholders shall not be subject to the payment of the corporate debts unless expressly otherwise
provided in the articles of association.
70 Del. Laws, c. 112, § 77.;
§ 1536. Dividends.
The directors of a credit card institution may declare dividends on common or preferred stock of so much of the net profits
of the corporation as they shall judge expedient; but the corporation shall, before the declaration of a dividend from the
net profits, carry 50% of its net profits of the preceding period for which the dividend is paid to its surplus fund until
the same shall amount to 50% of its capital stock; and thereafter shall carry 25% of its net profits of the preceding period
for which the dividend is paid to its surplus fund until the same shall amount to 100% of its capital stock.
70 Del. Laws, c. 112, § 77.;
§ 1537. Amendment of charter or certificate of incorporation.
(a) Credit card institutions created by or under this Code shall hereafter amend their charters or certificates of incorporation
by and under this section.
(b) Any credit card institution created under this chapter may, from time to time, when and as desired, amend its charter
or certificate of incorporation by addition to its corporate powers and purposes, or diminution thereof, or both (provided
such additional corporate power or purpose be such as is authorized or contemplated under any of the provisions of this chapter);
or by increasing or decreasing its authorized capital stock (provided that such increase or decrease be expressly approved
by the State Bank Commissioner); by changing the number or par value of its shares of stock; or by changing its corporate
title (provided that the words "savings" or "trust" shall not be used in the amended title); and by increasing or decreasing
its number of directors (provided that in no case shall the whole number of directors be less than 5). Any or all such changes
or alterations may be effected by 1 certificate of amendment. No amendment shall contain a provision which would not have
been lawful and proper to insert in an original certificate of incorporation granted or issued under this chapter.
(c) The procedure for amendment and the manner of making and effecting the same shall be as prescribed in Chapter 1 of Title
8 for the amendment of the certificate of incorporation of a corporation having a capital stock. No certificate of amendment
shall be received or filed by the Secretary of State or be deemed or held to be effective unless and until the proposed certificate
of amendment shall have been submitted to the State Bank Commissioner and shall have been approved both in substance and in
form by said Commissioner.
(d) Notwithstanding any of the provisions of this section, a credit card institution created under this chapter may adopt
such amendments to its certificate of incorporation as are necessary to permit such credit card institution to comply with
the provisions governing the conversion of a credit card institution charter pursuant to § 793 of this title.
70 Del. Laws, c. 112, § 77; 71 Del. Laws, c. 19, § 61.;
§ 1538. Merger and consolidation -- Authorized; procedure.
Subject to § 1539 of this title, no corporation created under this chapter may merge or consolidate with any other corporation
or entity except that any 2 or more corporations created under this chapter may merge or consolidate into a single corporation
which shall be any 1 of the merging or consolidating credit card institutions. The procedure for the merger or consolidation
of such corporations and the legal effect of any such merger or consolidation and the manner of making and effecting the same
shall be as prescribed in Chapter 1 of Title 8 for the merger or consolidation of 2 or more corporations organized under that
chapter. No agreement of merger or consolidation of corporations created under this chapter shall be received or filed by
the Secretary of State or be deemed or held to be effective unless and until the proposed agreement of merger or consolidation
shall have been submitted to the State Bank Commissioner and shall have been approved both in substance and in form by the
State Bank Commissioner.
70 Del. Laws, c. 112, § 77.;
§ 1539. Same -- Acquisition of assets and assumption of liabilities; Commissioner's approval; title to property.
(a) No corporation organized under this chapter shall merge or consolidate with any other such corporation and no one shall
take over any substantial portion of the assets of and/or assume a substantial portion of the liabilities, in whole or in
part, of any such corporation (whether such corporation is then doing business or has ceased to do business or has surrendered
its charter or has dissolved) unless and until such action shall be approved by the State Bank Commissioner.
(b) The Commissioner may require that the Commissioner be furnished with such information as to the assets and liabilities
and as to the condition of the credit card institutions concerned as the Commissioner deems necessary or proper to determine
whether to give or withhold the Commissioner's approval.
(c) The State Bank Commissioner shall refuse approval whenever in the Commissioner's opinion the transaction will weaken any
credit card institution concerned.
(d) No title to any property shall pass where the transaction is in violation of this section.