Ky. Rev. Stat. § 304.37-575

Current through 2024 Ky. Acts ch. 225

Section 304.37-575 - Prohibited practices

The following practices are prohibited:

(1) Borrowing funds from the mutual insurance holding company, or its subsidiaries and affiliates, to finance the purchase of any portion of a stock offering;

(2) Payment of commissions, "special fees," and any other special payment or extraordinary compensation to officers, directors, interested persons, and affiliates, for arranging, promoting, aiding, or assisting in reorganization to a mutual insurance holding company, or for arranging, promoting, aiding, assisting, or participating in the structuring and placement of a stock offering; and

(3) Entering into an understanding or agreement transferring legal or beneficial ownership of stock to another person in avoidance of these rules.

KRS 304.37-575

Effective:7/15/1998
Created 1998, Ky. Acts ch. 546, sec. 16, effective7/15/1998.