S.D. Admin. R. 20:06:04:25

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:06:04:25 - Exemption from restrictions on profits of acquisitions of shares of stock and stock options under certain stock bonus, stock option, or similar plans

Any acquisition of shares of stock, other than stock acquired upon the exercise of an option, warrant or right, pursuant to a stock bonus, profit sharing, retirement, incentive, thrift, savings or similar plan, or any acquisition of a qualified or a restricted stock option pursuant to a qualified or a restricted stock option plan, or a stock option pursuant to an employee stock purchase plan, by a director or officer of an insurer issuing such stock or stock option shall be exempt from the operation of SDCL 58-5-71 to 58-5-73, inclusive, if the plan has been approved, directly or indirectly by the:

(1) Affirmative votes of the holders of a majority of the securities of such insurer present, or represented, and entitled to vote at a meeting duly held in accordance with the applicable laws of the state of South Dakota; or

(2) Written consent of the holders of a majority of the securities of such insurer entitled to vote;

(3) Such vote or written consent (subdivisions 20:06:04:05(1) and (2)) is to be solicited substantially in accordance with chapter 20:06:03. For the purposes of this subdivision, the term "insurer" includes a predecessor corporation if the plan or obligations to participate thereunder were assumed by the insurer in connection with the succession.

S.D. Admin. R. 20:06:04:25

4 SDR 6, effective 8/9/1977; 12 SDR 151, 12 SDR 155, effective 7/1/1986.

General Authority: SDCL 58-5-73, 58-5-77.

Law Implemented: SDCL 58-5-71 to 58-5-73.