§7.2023. National bank reverse stock splits.
12 C.F.R. § 7.2023
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.
Legitimate corporate purpose. Examples of legitimate corporate purposes include a reverse stock split to:
Reduce the number of shareholders in order to qualify as a Subchapter S corporation; and
Reduce costs associated with shareholder communications and meetings.
Notes, amendments, and revision history
Amendments
[64 FR 60099, Nov. 4, 1999]
Authority
Authority: 12 U.S.C. 1 et seq., 25b, 29, 71, 71a, 92, 92a, 93, 93a, 95(b)(1), 371, 371d, 481, 484, 1462a, 1463, 1464, 1465, 1818, 1828, 3102(b), and 5412(b)(2)(B).
Source
Source: 61 FR 4862, Feb. 9, 1996, unless otherwise noted.
Amendments
[64 FR 60099, Nov. 4, 1999]