Section 375.380

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 1939, highlighted 1    

  375.380.  Dividends shall not be paid, when — penalty — liability of stockholder. — 1.  It shall not be lawful for the directors, trustees or managers of any insurance company to make any dividend, except from the surplus profits arising from their business, nor for any company to solicit or do new business, when its assets are less than three-fourths of its liabilities.

  2.  Any company violating the provisions aforesaid shall be subject to proceedings for dissolution.

  3.  Each stockholder in a stock company receiving any dividend made in violation of the above provision shall be liable to the creditors of such company to the extent of the dividend received, with compound interest on the same from the date of its receipt, as well as the costs of collecting the same, and the managers, trustees or directors assenting to the same, or any agent soliciting or doing new business, knowing or having reasonable cause to believe that such company is impaired as aforesaid, shall be deemed guilty of a violation of the provisions of this law, and shall be punished as by sections 375.010 to 375.920 provided.

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(RSMo 1939 § 6036)

Prior revisions: 1929 § 5925; 1919 § 6333; 1909 § 7064