§243. Incorporation
A. Three or more artificial or natural persons capable of contracting, who are citizens
of the United States and a majority of whom are residents of this state, may act as
incorporators to form a corporation for the purpose of transacting business as a health
maintenance organization.
B. Articles of incorporation shall be executed by authentic act signed by each of the
incorporators and shall state in the English language all of the following:
(1)The name of the corporation, which shall not be the same as nor deceptively
similar to the name of any other unaffiliated health maintenance organization authorized to
do business in this state unless:
(a)Such other health maintenance organization is about to change its name or to
cease to do business or is being wound up, an
Free access — add to your briefcase to read the full text and ask questions with AI
§243. Incorporation
A. Three or more artificial or natural persons capable of contracting, who are citizens
of the United States and a majority of whom are residents of this state, may act as
incorporators to form a corporation for the purpose of transacting business as a health
maintenance organization.
B. Articles of incorporation shall be executed by authentic act signed by each of the
incorporators and shall state in the English language all of the following:
(1) The name of the corporation, which shall not be the same as nor deceptively
similar to the name of any other unaffiliated health maintenance organization authorized to
do business in this state unless:
(a) Such other health maintenance organization is about to change its name or to
cease to do business or is being wound up, and the written consent of such other health
maintenance organization to the adoption of its name or a deceptively similar name has been
given in writing and is filed with the articles, or
(b) Such other health maintenance organization has heretofore been authorized to do
business in this state for more than two years and has never actively engaged in business.
(2) The purpose or purposes for which it is formed.
(3) Its duration.
(4) The street address, not a post office address only, of its initial registered office,
and if different, the street address, not a post office address only, of the corporation's initial
principal office.
(5) The full names and post office addresses and municipal addresses or locations,
which shall not be a post office box only, of its registered agents for service of process.
(6) The amount of paid-in capital and minimum surplus, or initial fund, with which
the corporation will begin business.
(7) The number of authorized shares, the par value of each share, the time when and
the manner in which payment on stock subscribed shall be made.
(8) The names of the first directors, their street address, not a post office address
only, and their classification and terms of office if they be named in the articles. Where the
first board of directors is not named in the articles, the articles shall provide the place where
and the date when the organization is to be perfected, and a meeting of the stockholders for
that purpose must be held not more than sixty days after the execution of the articles. At that
meeting the directors shall be elected.
(9) The name and post office address of each of the incorporators and a statement
of the number and class of shares subscribed by each, if any.
(10) The designation of general officers, the number of directors, which shall not be
less than three nor more than fifty, and the mode and manner in which directors shall be
elected, and officers elected or appointed.
(11) Any other provision for the regulation of the business and the conduct of the
affairs of the corporation, not prohibited by the laws of this state.
C. Such articles shall be submitted to the commissioner for his examination for a
period not to exceed thirty days from receipt and approval either before or after execution,
but before recordation. The commissioner shall not approve such articles unless they strictly
conform with the provisions of this Subpart.
D.(1) After the payment of all fees owed to the Department of Insurance, the articles
showing the approval of the commissioner shall be filed in the office of the secretary of state.
(2) If the secretary of state finds that the articles have been approved by the
commissioner and that the articles are in compliance with this Subpart and Title 12 of the
Louisiana Revised Statutes of 1950, and after all fees have been paid as required by law, the
secretary of state shall record the articles as filed on the date and time of receipt. After filing
the articles, the secretary of state shall deliver to the corporation or its representative a copy
of the document with an acknowledgment of the date of filing. The secretary of state's filing
of the articles of incorporation shall be conclusive evidence of the fact that the corporation
has been duly incorporated except that in any proceeding brought by the state to annul,
forfeit, or vacate a corporation's franchise, or by the commissioner to prohibit, suspend or
limit the corporation's right to conduct business as a health maintenance organization, the
certificate of incorporation shall be only prima facie evidence of due incorporation.
(3) Except as provided in R.S. 12:1-203(C), the corporate existence begins and the
corporation is duly incorporated when the articles of incorporation become effective as
provided in R.S. 12:1-123 and 205(C).
(4) The corporation shall not have authority to transact a health maintenance
organization business until a certificate of authority to transact such business is issued to it
by the commissioner.
E.(1) Except as otherwise provided in the articles of incorporation, an incorporated
health maintenance organization may amend its articles of incorporation in the manner
provided in R.S. 12:1-1003 and 237.
(2) After such amendment has been duly adopted, an authentic act setting forth the
amendment and the manner of adoption thereof shall be executed by such person or persons
authorized to do so at the meeting. A full copy of the resolution adopting such amendment,
certified as true copy by the secretary of the health maintenance organization, shall be
annexed to the authentic act. The articles of amendment shall be approved by the
commissioner and recorded with the secretary of state in the same manner provided for the
original articles of incorporation.
(3) The provisions of Paragraphs (1) and (2) of this Subsection are not applicable
when an incorporated health maintenance organization changes either its registered agent or
address, or both. In any such change, the incorporated health maintenance organization shall
provide the commissioner with the board resolution and notice and shall follow the
requirements of R.S. 12:1-501 through 1-504 and 236.
F. The provisions of R.S. 12:1-101 through 1-1705, 201 through 269, and other
provisions of the Louisiana Revised Statutes of 1950, relative to business and nonprofit
corporations, shall apply to the regulation of the business and the conduct of the affairs of
any health maintenance organization which has been incorporated pursuant to the provisions
of this Subpart. If a conflict exists between the provisions of this Subpart and the provisions
of Title 12, the provisions of this Subpart shall govern.