S.D. Admin. R. 20:06:04:27

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:06:04:27 - Participation of directors

With respect to the participation of directors:

(1) By the board of directors of the insurer, a majority of which board and majority of the directors acting in the matter are disinterested persons;

(2) By, or only in accordance with the recommendations of, a committee of three or more persons having full authority to act in the matter, all of the members of which committee are disinterested persons; or

(3) Otherwise in accordance with the plan, if the plan:

(a) Specifies the number or maximum number of shares of stock which directors may acquire or which may be subject to qualified, restricted or employee stock purchase plan stock options granted to directors and the terms upon which, and the times at which, or the periods within which, such stock may be acquired or such options may be acquired and exercised; or

(b) Sets forth, by formula or otherwise, effective and determinable limitations with respect to the foregoing based upon earnings of the insurer, dividends paid, compensation received by participants, option prices, market value of shares, outstanding shares of percentages thereof outstanding from time to time, or similar factors.

S.D. Admin. R. 20:06:04:27

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.