State Codes and Statutes
Statutes > Kansas > Chapter40 > Article7 > Statutes_1736540-773
40-773. Same; conversion into stock company; purchase of stock; noticeto members or policyholders of right to purchase; preference; limitation;nonmembers of society.If such fraternal benefit society is converting into a stocklife insurance company, it shall be the duty of such fraternal benefitsociety to advise every member or policyholder of the right to subscribefor and purchase the stock of such stock life insurance company and of theamount of such stock for which such member or policyholder is entitled tosubscribe and all other terms and conditions. The amount of such capitalstock available to each member or policyholder shall be determined as setforth in the plan of proposed conversion. Exercise of such right shall belimited to 90 days after notice. Notice of such right shall be written orprinted on a form approved by the commissioner of insurance and shall begiven either personally or by mail. If mailed, such notice shall be deemedto be delivered when deposited in the United States mail, with postageprepaid, addressed to the member or policyholder at the address as itappears on the records of the society.
No portion of the stock shall be offered for public sale until themembership of the society shall have had preference in the purchasethereof. No one member shall be allowed to subscribe for or purchase morethan 25% of the capital stock of the new company if there are other membersapplying in writing for the purchase of stock whose subscriptions are notfilled. If the membership shall not have subscribed for the total capitalstock authorized, others who were not members of the society at the time ofthe conversion may be permitted to subscribe for stock and be allowed equalrights in the ownership thereof with all other stockholders.
History: L. 1988, ch. 154, § 36; Jan. 1, 1989.
