§ 27-1-8-12 — Restrictions on amendments; decreasing capital stock

A company may amend its articles by
providing for a decrease of its capital stock to an amount not less than
the minimum capital required for the kind or kinds of insurance
transacted by the company before the amendment of the company's
articles of incorporation. The department shall not approve or issue its
certified copy of such amendment to the company if it shall be of the
opinion that the interests of policyholders or creditors may be
prejudiced thereby. No distribution of the assets of the company shall
be made to shareholders upon any such decrease of capital which shall
reduce the surplus of its assets over its liabilities, including capital, to
less than the minimum surplus required by this article. Upon any such
amendment so decreasing the capital, such company may require each
shareholder to return the shareholder's certificate of stock and accept
a new certificate for such proportion of the amount of its original stock
as the reduced capital shall bear to the original capital.
Formerly: Acts 1935, c.162, s.113. As amended by
P.L.252-1985, SEC.38; P.L.136-2018, SEC.154.