375.166. Expense of organization limited. - Missouri Statutes

Expense of organization limited.

375.166. 1. It shall be unlawful for any corporationorganized under the laws of this state for the purpose ofconducting an insurance business of any kind to pay more than tenpercent of the total amount realized from the sale of its capitalstock, whether in cash or notes, for the organization of thecompany.

2. In every case subscribers to the stock shall consent, inwriting, to the payment of the organization expenses, whichshall, in all cases, be paid out of the surplus funds of thecorporation; the ten percent to include commissions paid toagents for the sale of stock, rent, clerk hire, literature andall other expenses of every kind and nature, and all obligationsincurred, up to the time that application is made for a licenseto do an insurance business.

3. No officer of any company shall be permitted to draw anysalary before the corporation is fully organized and licensed todo business.

4. Any corporation already organized under the laws of thisstate to engage in the business aforesaid may increase itscapital stock for the purpose, in the manner and to the extentprescribed by law; subject, however, to the restrictions as toexpenses incurred in the sale thereof, and the consent of thestock subscribers to the payment of such expenses as are hereinspecified.

(RSMo 1939 § 6071, A.L. 1967 p. 516)