LD 2574
pg. 8
Page 7 of 11 An Act to Harmonize State Financial Services Laws with Federal Law Page 9 of 11
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LR 3899
Item 1

 
for the benefit of employees of the reorganized insurer, a
related stock holding company or the mutual holding company
may not directly or indirectly own or control, in the
aggregate, more than 10% of the voting stock of the stock
holding company or the reorganized insurer, unless the
reorganized insurer or the related stock holding company has
provided 30 days' prior written notice to the superintendent
and the superintendent has not objected to a higher
percentage.__The holdings of any such employee stock ownership
plan or other employee benefit plan that are allocated to
directors and officers who are employees must be included in
determining compliance with paragraph I.

 
K.__A person may not own or control, directly or indirectly,
more than 15% of any class of voting stock of the
reorganized insurer or any related stock holding company
without the prior approval of the superintendent.

 
L.__All voting stock of the reorganized insurer or any
related stock holding company acquired by any person in
excess of the maximum amount permitted to be acquired by
that person pursuant to this subsection is deemed to be
nonvoting stock for so long as it is held by any person in
excess of those limitations.__In addition to any other
enforcement powers of the superintendent under this Title, a
violation of the limitations of ownership may be enforced or
enjoined, as the case may be, by appropriate proceedings
commenced by the reorganized insurer or any related stock
holding company, the superintendent, the attorney general,
any member of the mutual holding company or any stockholder
of the reorganized insurer or of any related stock holding
company.__The action must be commenced in the Kennebec
County Superior Court or the superior court in the
jurisdiction of which the reorganized insurer has its home
office, and the court may issue any order, injunctive or
otherwise, that it finds necessary to cure the violation or
to prevent the action.

 
M.__A mutual holding company and a related stock holding
company are each deemed to be a holding company of the
reorganized insurer within the meaning of section 222, and
all provisions of that section apply to transactions
occurring between the mutual holding company, the stock
holding company and the reorganized insurer.__Approval of
the plan of reorganization by the superintendent pursuant to
section 3488__is considered approval of the acquisition of
control by a mutual holding company and any related stock
holding company under sections 222 and 3476.


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