The Perrysburg journal. [volume] (Perrysburg, Ohio) 1853-1861, 1856-06-28
AN ACT
mo. 90. /
April II, 1856.
enable Mutual Insurance Companies to


To enable Mutual Insurance Companies to be
come Joint Stock Companies.
SECTION |, BE il enacted by the General As.
sembly of the State of Ohio, That any corpora
ton authorized by any law Of this State, to in
sure property against loss or damage by fire or
any other cause or risk to make insurance upon
lives to make insurance against loss or damage
on goods or merchandise in the course Of trans
portation, whether on land or water on any
Vessels or boats, TO lend money on bottomry or
nspondentia or TO cause itself to be insured
as,inst any loss or risk they may incur in the
coarse of its business, and which is bound by
law to distribute the net profits Of its business,
IN Whole or M part among those who have paid
prehiums to the said company for insurance,
or aherwise holders Of the policies of insu-
rance may become a joint stock company
with all the powe and privileges as to the kind
OF BUSINESS ii may be authorized to prosecute, and
as to Ac mode and manner Of prosecuting the
same lapreviously possessed, by accepting the
provislRs Of this act, in the manner hereafter
provided
SEcr'os ,. That when the board Of directors
Tor the ttbe being, Of any such compony desire
to bccomAa joint stock compony by accepting
the proylions OF this act, they shall pass
resoIutionto that effect, calling meeting of
those holdhg the certificates of said company,
and all olhts entitled to receive on distribution,
any proportion OF the net profits Of said com
pany, of wtich meeting at least thirty days no
tice shall be gwen in two newspapers published
in, or of genebl circulation in the county in
which the principal office for business of said
company is silaled, specifying the time, place
and OBJECT OF holding the same when the
proposition TO ecome joint stock company
shall be submitted to them to be voted on, and
II agreed to by TIC persons, representing in per
son or by proxy hrec-iourths in amount of the
certificates OF salt company, or otherwise en,i
tied on Distribution to the major part of the net
profits of said company, the said company shall
thereupon cease to BE- a mutual and shall be-
come a Joint company
SEcTIoN 3. That thereafter no certificates
shall be issued to any person or persons,
emitting them to any proportion, on dis.
tribution Of the net Wofits of said company
excerpts certificates OF tarcs in the ca pta stock
of said company, aud all existing and outstand-
ing certificates shall be cancelled, ,and now GER
tifcacs of capital stock issued to an equal
omount to the holdcIs hereof, according to their
relative value which shall be estimated in con-
iormity with the interest they respectively bear,
and whenever tie board OF directors shall there
after declare a dividend arising from the profits
Of said company, they may slher pay the same.
in whole IN part, in money or issue new Ger
tifcatcs therefore, in whole or in part, thereby
increasing the capital stock Of said company.
unless directed by the hol !ers Of a majority in
i'm amount of the stock.
Srcuoy !. That the holder of any certificate
in any such mutual nsur1ne company. or
either person entitled to receive proportion on
distribution OF the net profits thereof voting al
any such meeting, as herein provided for, against
| the proposition 10 make such company Joint
stock company, shall be entitled 10 retain his
said certificate or other claim, drawing interest
as if such change had not been mad, and to re-
Ccve thereon from time to time, the proportion
of the profits thereof, TO which he would have
bacn otherwise entitled, to be creditd on the
same, until tho same shall decoma UlApaid on
and exinguished, remaining liable however, for
any payments thereon to said comThly. to
which he would have remained liable ON ccount
of any losses, in case said change had NJ been
made,
SEcmoy >. That the certificate or certificates
Of any person or firm, who may at any tine b.
indebted to the said giusurance company, and
who shall not pay such indebtedness wihn
sixty days after notice, that the same is d.,
may b. sold at public auction after three weeks
notice OF such sale in at least TWO uewspapCs
/ published in, or Of general circulation in th,
county, where the principle yiiico Of business o.
/ said company is situated and the MT proceeds
OF such sale shall be applied to the payment o
/ the claim Of the said insurance company. anc
/ the remainder, il any, shall BE- paid on drmanD
/ to the pruty entitled to the same and the in
| tarest of the holder of such certificates shall b,
efectualIy cancelled by such sale, and The Ger
titica les shall cancelled b. such sale, and tn,
certificates shall be deemed void and OF 90 cf
feet, and new certificates shall BE- ISSUED BY
said company to the purchasers Of said ctrtili
cafes.
SEcTioS g. That the directors Of any Iucl
company, on such charge being agreed to as here
in above provided, shall determine and decar
the amount of each share OF the said capTa
stock for woigh certificates shall be issued, al,
for all fractional parts thereof, TO which any p
son may be entitled, shall issue certificates Their
for which shall draw such rate Of !nteres
payable out of the current net profits of sal
company, and the principal of which shall
paid and cancelled, as the directors Of said com
pauy, for the time being, may from time to tim
order and determine.
SECTION Z. That it shall also be lawful fc
any mutual insurance company now in exls
ence, or hereafter created, which slall not desiT
to become joint stock company according t
1 the provisions of this act, to receive from an
person or persons applying for insurance in sal
| company, a certain definite sum Of money, TO
determined by the directors Of said company, j
full for such insurance, and said sum shall be !
lieu OF a premium note, and such person o
persons shall not be liable 10 said company du
ing the continuance of his or their policies o
account thereof for any further sum Of money
and all such sum or sums of money, as shall
paid to said company in lieu of said premium
mote as aforesaid, shall be retained as fund fC
the payment of losses aud expenses which ma
happen or accrue in and TO said company, whic
said fund shall be exhausted before a resort sha
be had to assessments upon the premium note
deposited with said company, which said mote
and fund as aforesaid, shall constitute the capitt
of said company, for the payment of losses an
expenses.
Section s. This act shall take effect and
in force from and after its passage
n. ii. VAN WORRIES,
Speaker of the House of Representatives.
THOMAS II. FORD,
President of the Senate
April 5, 1886,