Sec. 36a-198. (Formerly Sec. 36-142gg). Mutual holding company subsidiary holding company.
Sec. 36a-198. (Formerly Sec. 36-142gg). Mutual holding company subsidiary
holding company. (a) A mutual holding company may establish a subsidiary holding
company as a direct subsidiary to hold one hundred per cent of the stock of its reorganized
savings institution subsidiary. The formation and operation of the subsidiary holding
company may not be utilized as a means to evade or frustrate the purposes of sections
36a-192 to 36a-199, inclusive. The subsidiary holding company may be established
either at the time of the initial mutual holding company reorganization or at a subsequent
date, subject to the approval of and in accordance with any conditions or limitations
imposed by the commissioner. A proposal to establish a subsidiary holding company
shall be filed with the commissioner and shall include the proposed certificate of incorporation and bylaws of the subsidiary holding company and any other information required by the commissioner.
(b) For purposes of section 36a-196, the subsidiary holding company shall be treated
as a reorganized savings institution issuing stock and shall be subject to the requirements
of said section. In the case of a stock issuance by a subsidiary holding company, the
aggregate amount of outstanding common stock of the subsidiary holding company
owned or controlled by persons other than the subsidiary holding company's mutual
holding company parent at the close of the proposed issuance shall be less than fifty per
cent of the subsidiary holding company's total outstanding common stock.
(c) Subject to the approval of the commissioner, a subsidiary holding company may
acquire and dispose of its own stock, provided no such acquisition or disposal results
in persons other than the subsidiary holding company's mutual holding company parent
owning or controlling a greater percentage of common stock than is permissible under
subsection (b) of this section.
(P.A. 85-330, S. 13, 14; P.A. 02-47, S. 13; P.A. 05-39, S. 6; P.A. 08-119, S. 5.)
History: Sec. 36-142gg transferred to Sec. 36a-198 in 1995; P.A. 02-47 replaced former section re regulations with
provisions designated as Subsecs. (a) and (b) re establishment of subsidiary holding company by mutual holding company
to hold stock of reorganized savings institution, effective May 9, 2002; P.A. 05-39 amended Subsec. (b) to substitute 50%
for 51% and to make a technical change, effective May 17, 2005; P.A. 08-119 added Subsec. (c) re acquisition and disposal
of its own stock by subsidiary holding company.