§ 10-3-606 — Effect of exchange

Colorado § 10-3-606

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Regulation of Insurance Companies

Text

(1) Upon the plan of exchange becoming
effective, the exchange provided for therein shall be deemed to have been
consummated, each shareholder of the domestic company shall cease to be a
shareholder of such company, the ownership of all shares of the issued and
outstanding stock of the domestic company, except shares payment of the value of
which is required to be made by the domestic company or the acquiring corporation
pursuant to section 10-3-604, shall vest in the acquiring corporation automatically
without any physical transfer or deposit of certificates representing such shares,
and all shares payment of the value of which is required to be made by the domestic
company or the acquiring corporation pursuant to section 10-3-604, shall be
deemed no longer outstanding shares of the domestic company.

(2) Certificates representing shares of the domestic company prior to the
plan of exchange becoming effective, except certificates representing shares
payment of the value of which is required to be made pursuant to section 10-3-604,
and bearing a notation thereon that objection and demand pursuant to such section
have been made, shall, after the plan of exchange becomes effective, represent:
Shares of the issued and outstanding capital stock or other securities issued by the
acquiring corporation; and the right, if any, to receive such cash or other
consideration upon such terms as are specified in the plan of exchange; but the
plan of exchange may specify that all certificates representing shares of stock of
the domestic company, except certificates representing shares payment of the
value of which is required to be made pursuant to section 10-3-604, shall, after the
plan of exchange becomes effective, represent only the right to receive shares of
stock or other securities issued by the acquiring corporation, or cash, or other
consideration, or any combination thereof, upon such terms as are specified in the
plan of exchange. Certificates representing shares of the domestic company with
respect to which an objection and demand have been made pursuant to section 10-3-604, and bearing a notation thereon that such objection and demand have been
made, shall, after the plan of exchange becomes effective, represent only the right
to receive payment therefor, subject to the provisions of this part 6.

Legislative History

Source: L. 69: p. 533, � 6. C.R.S. 1963: � 72-27-6.