2004 Minnesota Statutes

     65A.24 Stockholders to make up impairment. 

    If, at any time after the special reserve fund shall have 
 been accumulated by any company, the directors of the company 
 shall present evidence satisfactory to the commissioner that the 
 capital of the company has become impaired, the commissioner 
 shall order the directors to call upon the stockholders to make 
 up this impairment, and the board of directors may thereupon 
 require the necessary payment by the stockholders to make good 
 the whole of the impairment, or they may apply for that purpose 
 the whole or any part of the special reserve fund and require of 
 the stockholders payment of such amount as may be necessary to 
 make up the balance of the impairment not made up out of the 
 special reserve fund.  The stock of every stockholder shall be 
 pledged and liable for the amount assessed to make up the 
 impairment, either in whole or in part, and in case any 
 stockholder refuses to pay the assessment, the stock standing in 
 that person's name may be sold at public auction, after 30 days' 
 notice, in such manner as the directors may provide.  If the 
 board of directors elect to make good the impairment, or any 
 part thereof, out of the special reserve fund, the commissioner 
 shall, upon request of the board, transfer to the company so 
 much of the special reserve fund as is necessary for the 
 purpose.  No company doing business under sections 65A.16 to 
 65A.24 shall insure any larger amount upon any single risk than 
 is permitted by law to a company possessing the same amount of 
 capital, irrespective of the fund provided for in sections 
 65A.16 to 65A.24.  

    HIST: 1967 c 395 art 6 s 24; 1986 c 444; 1997 c 7 art 1 s 19