§ 38.2-1015 — Determining value of stock outstanding; dismissal of petition or entry of decree requiring payment for and transfer of stock

Virginia § 38.2-1015

• Jurisdiction: Virginia
• Title 38.2: INSURANCE
• Ch. 10: ORGANIZATION, ADMISSION AND LICENSING OF INSURERS
• Art. 2: CONVERSION OF DOMESTIC STOCK INSURER TO MUTUAL INSURER

Text

The court shall determine the per share fair cash value as of the date of the filing of the petition of the stock remaining in the hands of the public. If the court finds that on that basis, completion of mutualization may not be effected without jeopardizing the solvency of the insurer or the security of its policyholders, the petition shall be dismissed. Otherwise, the court shall enter an appropriate decree to require (i) the payment into court by the insurer of the aggregate amount due the remaining stockholders, with any interest and costs, which may include attorneys' fees that the court may require, and (ii) the transfer and delivery to the insurer of all stock certificates still outstanding in the hands of the public. Upon payment by the insurer, the trustees under the plan of mutualization shall be considered, for all purposes of the plan of mutualization, to have acquired all of its outstanding stock. The holders of the stock shall possess no further right with respect to the stock, except to receive its fair cash value as determined by the court. The court shall retain jurisdiction over the distribution of the funds.

Legislative History

1954, c. 20, § 38.1-495.4; 1986, c. 562.