{"data":{"id":"us-ky/krs-304.24-603","jurisdiction":"us-ky","citation":"KRS 304.24-603","heading":"Amendment of articles of incorporation -- Plan of conversion.","body":"(1) The board of directors of the converting mutual shall adopt a resolution proposing\nthe amendment of its articles of incorporation in accordance with KRS 304.24 -080\nand proposing a plan of conversion.\n(2) The plan of conversion shall:\n(a) Describe the manne r in which the proposed conversion shall occur and the\ninsurer and any other business entity that will result from or be directly\naffected by the conversion, including the former mutual and any affiliate;\n(b) Provide that the membership interests in the co nverting mutual shall be\nextinguished as of the effective date of the conversion;\n(c) Require the fair and equitable distribution of aggregate consideration to the\neligible members, upon the extinguishing of their membership interests, which\nshall be equal to the fair value of the converting mutual as determined under a\nfair formula:\n1. Describe the manner in which the fair value of the converting mutual\nshall be determined or established;\n2. Describe the form or forms of consideration that shall be distrib uted to\nthe eligible members; and\n3. Specify relevant classes, categories, or groups of eligible members, and\ndescribe the method or formula that shall be used for the equitable\nallocation of the aggregate consideration among the eligible members;\n(d) Provide for the determination and preservation of the reasonable dividend\nexpectations of eligible members and other policyholders with policies that\nprovide for the distribution of policy dividends that shall be implemented\nthrough establishment of a closed b lock or other method acceptable to the\ncommissioner in compliance with KRS 304.24-600 to 304.24-625;\n(e) Specify the effective date of the plan of conversion and distributions to\neligible members; and\n(f) Include all other provisions that are necessary for , or material to, the\nimplementation of the conversion.\n(3) The plan of conversion may include any other provisions that the converting mutual\ndeems necessary or reasonable.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29581","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"4cd7aee6d18b299b01b4f9a74aaff9b83ead3de36cfa98aca0a975bdc2a28bb0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-601","next":"us-ky/krs-304.24-605"},"notice":"GroundRules: Original legal text. Not legal advice."}