Page:United States Statutes at Large Volume 48 Part 1.djvu/1171

 73d CONGRESS. SESS. II. CH. 672 . JU NE 19, 1934. SEC. 4. AUTHORITY TO SOLICIT SUBSCRIPTIONS TO CAPI TAL OF CO M- PANY IN COURS E OF ORGANIZATION .-NO person shall solicit subscrip- tions for the capital stock of or applications for insurance in any such company in course of organization unless he has been duly authorized by the company and a certificate of his authority, duly signed by a principal officer of the company, has been filed with and approved by the Superintendent. SEC. 5 . SUBSCRIPTION TO CAPITAL STOCK ; LIMITATION OF EXPENSE ON SALE OF CA PI TAL STOCK .-Every subscription to the capital stock of a stock company shall contain the stipulation that no sum shall be used for commission, promotion, or organization expenses in excess of a percentage of the amount paid upon the stock subscriptions, to be named in such stipul ation and approv ed by the Superi ntend ent, and the remainder of sums so paid to the company shall be invested in sec uriti es in which a li fe-ins uranc e com pany is aut horiz ed to invest, or deposited in a bank or trust company in the District until the company has duly procured a certificate of authority from the Superintendent. SEC. 6. EXA MINATION OF COMPANY IN COURSE OF ORGANIZATION .- The Superintendent shall personally or through his deputy and assistants, examine into the affairs of any such company in course of org aniza tion and in spect its b ooks and p apers, and may s ummon and ex amine unde r oath any office r or agent or any person who is or has been connected with or who has knowledge of the affairs of such company, and if he find the company is violating the law, or if the company shall not be qualified for a certificate of authority within two years from date of its permit, he shall revoke its per- mit ; and if he find an agent of such company has violated the law, he shall revoke his auth ority, a nd he ma y for suc h agent' s violat ion revoke the compa ny's p ermit. Any revocation shall be after twenty days' notice. The Superintendent may, on proper showing, reinstate any company's permit or agent's authority which he has revoked. SEC. 7. WH EN CORPORATE POWERS OF COM PA NY IN COURSE OF ORGANI- ZATIO N SH ALL CEASE .-If any domestic life-insurance company, in course of organization, shall not commence to issue policies within two years from the date of filing its articles of incorporation in the office of the Superintendent, its powers shall thereby cease, and the court, upon petition of the Superintendent or of any person in- terested, may fix by decree the time in which the Superintendent may settle and close its affairs : Provided, however, That the Super- intendent may extend the time for any such company to commence the issu ance of policies for a p eriod no t exceedi ng two y ears if the said company shall show good cause in writing why the same should be done. SEC. 8. CAP ITAL-STOCK REQUIREMENTS. -A domestic capita l-stock company organized under this Act shall have a paid-up capital stock of not less than $100, 000 . Each dome stic capital-stock company organized under this Act, in addition to the paid-up capital stock shall have a surplus paid up equal to at least 50 per centum of such capital stock. SEC. 9. A MEND MENT O F AR TICLES OF INCORPORATION .-Any company may amend its articles of incorporation upon publishing notice of such intention, authorized by a majority of its directors, once a week for thr ee conse cutive w eeks in a newspa per of g eneral c irculati on in the District, and with the written consent of two thirds of its stock- holders, or two thirds of its members present in person or by proxy at a mee ting called for that purpos e if it does not have capi tal stock, and by observing such other and further requirements in that behalf as may b e prescr ibed in its arti cles of incorpor ation. Such 1145 Certificate to solicit subscriptions to capital of company in course of organization. Subscription tt, capi- tal stock. Limitation of expense on sale of capital stock. Company in course o f organizat ion. Examination ol. Revoca tion of pe rmit. Agent's authority. Notice re quired. Corporate powers, company in course of organizat ion. Termination, if poli- eies not issued within two years from date of filing articles. Clos ing affa irs of. Proviso. Extension author- ized. Capital stock require- ments. Articles of incorpora- tion, amendment. Publication of in- tention