Tex.
Ins. Code Section 862.151
Reduction of Capital Stock and Par Value of Shares
(a)
If the minimum surplus of a fire, marine, or inland marine insurance company is impaired in excess of the amount permitted under Subchapter B, Chapter 404 (Financial Condition), the commissioner may allow the company to amend its charter as provided by Sections 822.157 (Action by Commissioner After Filing of Application for Charter Amendment) and 822.158 (Determination on Application for Charter Amendment) to reduce the amount of the company’s capital stock and the par value of its shares in proportion to the extent of the permitted amount of impairment.(b)
A company acting under Subsection (a):(1)
may not reduce the par value of its shares below the sum computed under Section 822.055 (Shares of Stock with Par Value);(2)
may not deduct from the assets and property on hand more than $125,000;(3)
shall retain the remainder of the assets and property on hand as surplus assets;(4)
may not distribute any of the assets or property to the shareholders; and(5)
may not reduce the capital stock or surplus of the company to an amount less than the minimum capital and the minimum surplus required by Sections 822.202 (Full Coverage Automobile Insurance; Determination of Amounts), 822.210 (Commissioner May Require Larger Capital and Surplus Amounts), and 822.211 (Action of Commissioner When Capital or Surplus Requirements Not Satisfied), subject to Subchapter B, Chapter 404 (Financial Condition).
Source:
Section 862.151 — Reduction of Capital Stock and Par Value of Shares, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.862.htm#862.151 (accessed May 18, 2024).
