KRS 299.240: Fixing amount and shares of capital stock -- Sale of stock.

(1) At the meeting to change the form of the company, if the proposed change is

approved, the amount of the capital stock of the reorganized company shall be fixed

within the limits prescribed by law for companies of the type to which the change is

made, and t he par value of the shares and the number of shares into which the

capital stock is to be divided shall be determined.

(2) The policyholders of the assessment or cooperative company shall have the first

right to subscribe for stock, subject to such equita ble regulations as the directors

may prescribe. All subscriptions for shares of stock shall be paid for in cash and at a

price not less than par.