A company may, with the approval of the Commissioner, amend its articles of incorporation by providing for a decrease of its capital stock and a corresponding increase in surplus to an amount not less than the minimum capital stock and surplus required by this subdivision. The Commissioner shall not approve or issue his certified copy of such amendment if he be of the opinion that the interests of policyholders or creditors may be prejudiced thereby. No distribution of the assets of the company shall be made to stockholders upon any such decrease of capital stock which shall reduce the surplus and capital stock to less than the minimum capital stock and surplus required as aforesaid. Upon any such amendment so decreasing the capital stock such company may require each stockholder to return his certificate of stock and accept a new certificate for such proportion of the amount of its original capital stock as the reduced capital stock shall bear to the original capital stock.
(June 19, 1934, 48 Stat. 1146, ch. 672, ch. III, § 11; May 21, 1997, D.C. Law 11-268, § 10(k), 44 DCR 1730.)
Prior Codifications1981 Ed., § 35-611.
1973 Ed., § 35-511.
Editor's NotesDepartment of Insurance abolished: See Historical and Statutory Notes following § 31-4402.