Section 386:40 Power to Cancel Capital Stock. - New Hampshire Statutes

Any bank operating as a guaranty savings bank may at any time by a 2/3 vote of the stockholders cancel its capital stock and distribute pro rata among the stockholders all or any part of the funds of the bank to which they are entitled, if any; provided, however, (1) that no distribution shall be made that will reduce the total value of the net assets of the bank as found by the commissioner, including any funds to which the stockholders are entitled, to an amount less than 105 percent of the amount due the general depositors, and (2) that no such vote to cancel where no distribution is to be made to the stockholders shall become effective and no such distribution shall be made (a) except with the written approval of the bank commissioner, and (b) until all general depositors shall have consented to such proposed action or the commissioner shall have given them 30 days' notice thereof at the expense of the bank by depositing a written notice thereof in the mail, first class postage prepaid, addressed to each general depositor at his address as shown on the records of the bank or as otherwise known to the commissioner.

Source. 1939, 170:7. RL 309:40. RSA 386:40. 1975, 86:2, eff. June 14, 1975.