§ 58-10-5. Stock acquired to be turned over to voting trust until all stock acquired; dividends repaid to corporation for beneficiaries. - North Carolina Statutes

§58‑10‑5.  Stock acquired to be turned over to voting trust untilall stock acquired; dividends repaid to corporation for beneficiaries.

If a domestic stock lifeinsurance corporation shall determine to become a mutual life insurancecorporation it may, in carrying out any plan to that end under the provisionsof G.S. 58‑10‑1, acquire any shares of its own stock by gift,bequest or purchase.  And until all such shares are acquired, any shares soacquired shall be acquired in trust for the policyholders of the corporation ashereinafter provided, and shall be assigned and transferred on the books of thecorporation to not less than three nor more than five trustees, and be held bythem in trust and be voted by such trustees at all corporate meetings at whichstockholders have the right to vote until all of the capital stock of suchcorporation is acquired, when the entire capital stock shall be retired andcanceled; and thereupon, unless sooner incorporated as such, the corporationshall be and become a mutual life insurance corporation without capital stock. Said trustees shall be appointed and vacancies shall be filled as provided inthe plan adopted under G.S. 58‑10‑1.  Said trustees shall file withthe corporation and with the Commissioner a verified acceptance of theirappointments and declaration that they will faithfully discharge their dutiesas such trustees.  After the payment of such dividends to stockholders orformer stockholders as may have been provided in the plan adopted under G.S. 58‑10‑1,all dividends and other sums received by said trustees on said shares of stockso acquired, after paying the necessary expenses of executing said trust, shallbe immediately repaid to said corporation for the benefit of all who are or maybecome policyholders of said corporation and entitled to participate in theprofits thereof, and shall be added to and become a part of the surplus earnedby said corporation, and be apportionable accordingly as a part of said surplusamong said policyholders. (1937, c. 231, s. 2; 1991, c. 720, s. 4.)