Page:United States Statutes at Large Volume 48 Part 1.djvu/1177

 73d CONGRESS. SESS. II. CH. 672 . J UNE 19, 1934. 1151 to defr aud poli cyholder s or cre ditors. If any of the directors shall Exemp tion. object to declaring a dividend or the payment of the same, and shall, at any time before the time fixed for the payment thereof, file a certificate of their objections in writing with the secretary of the company and with the Superintendent, they shall be exempt from the liability prescribed in this section for dividends declared or paid impai ring the ca pital stoc k and minim um su rplus. SEC. 27. SALARIES TO BE AUTHORIZED BY DIRECTORS .-No domesti c beauaries, eiL amount to company shall pay any salary, compensation, or emolument to any officer, trust ee, or director thereof, amounti ng in any one ye ar to more than $5 ,000, un less suc h paymen t shall be autho rized by the boa rd of directors of the company. SEo. 28. LI MrP AT ION OF DIVIDENDS TO STOCKHOLDERS AND POLICY- Dividends to stock- holders and polieyhold- HoLDERS.-No domestic company shall make any payments in form er a. of dividends or otherwise to its stockholders for or on account of Limitation on pa `-- mentn any int erest in or rela tion to the comp any as s tockhold ers unle ss it possesses assets in the amount of su ch payment in excess of its liabilities, including its capital stock, and the surplus required by this Act ; and no dome stic compan y sha ll ma ke any paym ents to its policyholders for or on account of any interest in or relation to the compa ny as membe rs or poli cyhold ers e xcept for matured claims or other poli cy obl igati ons a nd in the p urcha se of surre nder values unless it possesses assets in the amount of such payments in excess of its liabilities, and the capital stock and surplus required by this Act. S EC. 29 . OFFICERS .-There shall be a president, a secretary, and a Ofli car s r treasurer of the company, who shall be elected by the directors ; and also such subordinate officers as may be elected or appointed, and who may be required to give security for the faithful performance of the duties of their office, as this Act and the company by its bylaws may require. S EC. 30. OFFICERS AND DIRECTORS NOT TO BE PECUNIARILY INTERESTED Pec uni ary offi eers and directors interest of n IN TRANSACTIONS. -No director or officer of any company doing busi- transaetions forbidde i nn ness in the District shall receive any money or valuable thing for negotiating, procuring, recommending, or aiding in any purchase by or sale to such company of any property, or any loan from such com- pany, nor be pecuniarily interested, either as principal, coprincipal, agent, or beneficiary, in any such purchase, sale, or loan, nor shall the financial obligation of any such director or officer be guaranteed by s uch comp any in any capacity : Provided, That nothing herein F ol~- appraising contained shall prevent any such director or officer from receiving a property. fee for appraising property for said company or for serving on any committ ee that ,passes on the i nvestmen ts of sa id compa ny : Provided f urtlher, That nothing herein contained shall prevent a life-insurance Loans on policies. comp any fr om maki ng a l oan up on a policy h eld th erei n by a director not in excess of the ne t value thereof. Any person violating Penalty provision. any prov ision of this se ction sh all be g uilty of a misdem eanor. SEC. 31. VOTING TRUSTS PROHIBFPED .-It shall be unlawful for any iced tingtrusts prohib stockholder, director, or officer of any company having capital stock to ent er in to any con tr act or agreement, commonly known as "vot- ing-trus t agreem ents ", whereby the rights, benefits, or liabilities attaching to the capital stock are transferred or assigned, tempo- rarily o r otherw ise, to any pers on or gr oup of pe rsons, i ncorpora ted or unincorporated, for the purpose of controlling, managing, or directing the company, or voting its stock : Provi ded, That this Proxies, es

section shall not • p revent the grant ing of prox ies b y stoc khold ers authorizing a designated individual to represent th em at stock- holders' meetings.