Section 7.2023 - National bank reverse stock splits(a)Authority to engage in reverse stock splits. A national bank may engage in a reverse stock split if the transaction serves a legitimate corporate purpose and provides adequate dissenting shareholders' rights.(b)Legitimate corporate purpose. Examples of legitimate corporate purposes include a reverse stock split to:(1) Reduce the number of shareholders in order to qualify as a Subchapter S corporation; and(2) Reduce costs associated with shareholder communications and meetings.64 FR 60099, Nov. 4, 1999