 |
Texas Statutes (Last Updated: January 4, 2014) |
 |
INSURANCE CODE |
|
Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES |
|
Subtitle C. LIFE, HEALTH, AND ACCIDENT INSURERS AND RELATED ENTITIES |
|
Chapter 841. LIFE, HEALTH, OR ACCIDENT INSURANCE COMPANIES |
|
Subchapter B. FORMATION AND STRUCTURE OF DOMESTIC COMPANIES |
Sec. 841.055. SHARES OF STOCK
-
(a) The shares of stock of an insurance company operating under this chapter may be divided or converted into shares of stock with a par value or shares of stock without par value or into a combination of shares with or without par value.
(b) Each issued share of stock must be fully paid for and nonassessable.
(c) The insurance company by an amendment to its charter may increase or decrease the total number of shares of stock the company is authorized to issue if:
(1) shares representing at least 50 percent of the total par value of the authorized shares with a par value, if any, have been in good faith subscribed and fully paid for; and
(2) shares representing at least 50 percent of the total number of the authorized shares without a par value, if any, have been in good faith subscribed and fully paid for.
(d) Authorized but unissued shares of stock of an insurance company are not considered capital, stock, or capital stock of the company.
(e) This section and Sections 841.056 and 841.057 do not impair the charter rights of an insurance company authorized to issue shares of stock with or without a par value before September 6, 1955.