{"data":{"id":"us/12-cfr-7.2023","jurisdiction":"us","citation":"12 CFR 7.2023","heading":"National bank reverse stock splits.","body":"(a) Authority to engage in reverse stock splits. A national bank may engage in a reverse stock split if the transaction serves a legitimate corporate purpose and provides adequate dissenting shareholders' rights.\n(b) Legitimate corporate purpose. Examples of legitimate corporate purposes include a reverse stock split to:\n(1) Reduce the number of shareholders in order to qualify as a Subchapter S corporation; and\n(2) Reduce costs associated with shareholder communications and meetings.","path":["Title 12—Banks and Banking","CHAPTER I—COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY","PART 7—ACTIVITIES AND OPERATIONS","Subpart B—Corporate Practices"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"16abdeec564cb790a81948099aeca0a788578fdcae7835eb6536c463da832430","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-7.2022","next":"us/12-cfr-7.2024"},"notice":"GroundRules: Original legal text. Not legal advice."}