§ 58-7-115. Increase of capital stock.
§58‑7‑115. Increase of capital stock.
Any company organized underthe provisions of Articles 1 through 64 of this Chapter may issue pro rata toits stockholders certificates of any portion of its surplus which shall beconsidered an increase of its capital to the amount of such certificates. Asused in this section, "surplus" means earned surplus; provided,however, issuance of certificates out of paid‑in and contributed surpluswill be permitted on a case‑by‑case basis, with the prior approvalof the Commissioner. The issuance of those certificates shall not lower thetotal surplus of the insurer to an amount less than that required to bemaintained by G.S. 58‑7‑75. The company may, at a meeting calledfor the purpose, vote to increase the amount and number of shares of itscapital stock, and to issue certificates therefor when paid for in full. Inwhichever method the increase is made, the company shall, within 30 days afterthe issue of such certificates, submit to the Commissioner a certificate settingforth the amount of the increase and the facts of the transaction, signed andsworn to by its president and secretary and a majority of its directors. Ifthe Commissioner finds that the facts conform to the law, he shall endorse hisapproval thereof; and upon filing such certificate so endorsed with theSecretary of State, and the payment of a fee of five dollars ($5.00) for filingthe same, the company may transact business upon the capital as increased, andthe Commissioner shall issue his certificate to that effect. (1899,c. 54, s. 29; Rev., s. 4734; C.S., s. 6337; 1945, c. 386; 1991, c. 720, s. 4;1993, c. 452, s. 6.)