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Can you summarize 9-B MERS Section 319?
ORGANIZATION AND MANAGEMENT OF INVESTOR-OWNED INSTITUTIONS > Special provisions for subsidiary banks of mutual holding companies
Short Summary
This legal document provides special provisions for subsidiary banks of mutual holding companies. It states that a subsidiary bank established through a reorganization under chapter 105 must be organized as a corporation. Additionally, it requires the articles of incorporation of the subsidiary bank to be amended to provide for proportionate representation of minority stockholders on the board of directors. The representation should be based on the percentage of common stock owned by the minority stockholders relative to the total amount of common stock issued and outstanding. The document also prohibits directors or officers of the mutual holding company or subsidiary bank, as well as any affiliate of the company or institution, from serving as designated minority stockholder representatives on the board of directors of the subsidiary bank. It further clarifies that shares of stock owned by individual directors or officers of the mutual holding company are considered owned by the mutual holding company for determining proportionate representation. Representatives of the mutual holding company on the subsidiary bank’s board of directors must be selected in accordance with chapter 105.
Whom does it apply to?
Subsidiary banks established pursuant to a reorganization under chapter 105
What does it govern?
Special provisions for subsidiary banks of mutual holding companies
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Maine