Tex.
Ins. Code Section 825.102
Acquisition in Trust
(a)
Until all of the shares of a converting company are acquired, any shares acquired under the stock acquisition plan shall be held in trust for the policyholders of the converting company by three trustees appointed as provided by the stock acquisition plan.(b)
Each appointee must file with the converting company a verified acceptance of the appointment and a declaration that the appointee will faithfully discharge the appointee’s duties.(c)
The shares shall be assigned and transferred on the books of the converting company to the trustees. The trustees shall vote the shares at each meeting at which shareholders are entitled to vote, until all the capital stock of the converting company is canceled under Section 825.104 (Conversion Complete on Cancellation of Stock; Application of Certain Laws).(d)
After paying the necessary expenses of executing the trust, the trustees shall immediately pay all dividends and other amounts received on the shares of stock acquired under Section 825.101 (Issuance of Annuity Bonds in Payment of Stock) to the converting company for the benefit of those who are or become policyholders of the resulting company entitled to participate in the profits of the resulting company.(e)
All amounts received by the converting company under Subsection (d) shall be added to the surplus earned by the resulting company and accordingly are apportionable as a part of the surplus among the resulting company’s policyholders.(f)
A vacancy among the trustees shall be filled as provided by the stock acquisition plan.
Source:
Section 825.102 — Acquisition in Trust, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.825.htm#825.102 (accessed Jun. 5, 2024).
