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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>64632</law_id><section_number>38.2-1015</section_number><catch_line>Determining value of stock outstanding; dismissal of petition or entry of decree requiring payment for and transfer of stock</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="38.2">Insurance</unit><unit label="chapter" level="2" order_by="1" identifier="10">Organization, Admission and Licensing of Insurers</unit><unit label="article" level="3" order_by="1" identifier="2">Conversion of Domestic Stock Insurer to Mutual Insurer</unit></structure><text>
						<section><p>The <span class="dictionary">court</span> shall determine the per share fair cash value as of the date of the filing of the <span class="dictionary">petition</span> of the stock remaining in the hands of the public. If the <span class="dictionary">court</span> finds that on that basis, completion of mutualization may not be effected without jeopardizing the solvency of the <span class="dictionary">insurer</span> or the security of its policyholders, the <span class="dictionary">petition</span> shall be dismissed. Otherwise, the <span class="dictionary">court</span> shall enter an appropriate <span class="dictionary">decree</span> to require (i) the payment into <span class="dictionary">court</span> by the <span class="dictionary">insurer</span> of the aggregate amount due the remaining stockholders, with any interest and costs, which may include attorneys&#x2019; fees that the <span class="dictionary">court</span> may require, and (ii) the transfer and delivery to the <span class="dictionary">insurer</span> of all stock certificates still outstanding in the hands of the public. Upon payment by the <span class="dictionary">insurer</span>, the trustees under the plan of mutualization shall be considered, for all purposes of the plan of mutualization, to have acquired all of its outstanding stock. The holders of the stock shall possess no further right with respect to the stock, except to receive its fair cash value as determined by the <span class="dictionary">court</span>. The <span class="dictionary">court</span> shall retain <span class="dictionary">jurisdiction</span> over the distribution of the funds.</p></section></text><history>1954, c. 20, &#xA7; 38.1-495.4; 1986, c. 562.</history><metadata></metadata></law>
