ENTITLED, An Act to
provide for the division of farm mutual insurance companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That chapter
58-35
be amended by adding thereto a NEW SECTION to read as
follows:
Any farm mutual may divide itself into two or more farm mutuals. A written plan of division
shall be prepared by the board of directors or by a committee selected by the board for that
purpose. The plan of division shall set forth all the terms of the division and the proposed effect
of the division on all members of the farm mutual. The plan shall also contain the articles of each
new farm mutual being formed, if applicable, and any amendments to the articles of the remaining
farm mutual. The applicable provisions of
§
58-35-60 apply to the plan of division and to the
merger or integration of the divided farm mutual into another farm mutual or farm mutuals.
Section
2.
That chapter
58-35
be amended by adding thereto a NEW SECTION to read as
follows:
The members of the farm mutual shall vote on the proposed plan of division in the manner
provided in
§
§
58-35-61 and 58-35-62.
Section
3.
That chapter
58-35
be amended by adding thereto a NEW SECTION to read as
follows:
The articles of division of a farm mutual, if approved, shall set forth the approved plan and
such other information as required by
§
58-35-63 and shall be filed and approved as provided for
by
§
58-35-64. Each part of the plan that contains the articles of a new farm mutual shall be
separately filed and recorded as articles of incorporation for such new farm mutual. Any new farm
mutual formed pursuant to this Act is subject to the provisions of this chapter in the same manner
as any other farm mutual.