215 ILCS 5/32.1
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article II - Domestic Stock Companies

 (from Ch. 73, par. 644.1)(Section scheduled to be repealed on January 1, 2027)Sec. 32.1.     Stock option plans.     A company subject to this Article which has done business in Illinois  for 3 or more years and which has adopted a stock option plan shall  submit that plan to the Director. Unless the Director finds that such  stock option plan creates an inequity, fraud, or deception upon  shareholders of the company, the Director shall approve such plan and  issue a permit to the company authorizing the issuance of such shares of  stock as optionees under the plan are entitled from time to time to  acquire by the exercise of their options, including an adjustment in the  number of shares to be issued as may at any time be appropriate due to  the increase or decrease in the number of shares resulting from any  share dividend, and subdivision or combination of shares, or any  reorganization, merger, consolidation, or other recapitalization or  change in the corporate structure or shares of the company. A stock  option plan is deemed prima facie as not creating any inequity, fraud,  or deception upon shareholders if it complies with applicable provisions  of the Internal Revenue Code in effect at the time of the adoption of  the plan and continues in compliance with those provisions or other new  provisions of the Internal Revenue Code as it hereafter may be amended;  provided, however, that the number of shares in respect to such plan  together with the number of shares in respect of which unexpired options  are outstanding or may be granted under any and all option plans of the  company shall in no event exceed 10% of the total shares outstanding.  The permit is effective with respect to all shares issued at any time to  optionees under the plan. After receipt of the permit and upon receipt  by the company of the full purchase price for any shares to be issued to  any optionee, the company may issue such shares to any such optionee  without further authorization from the Director. If a plan approved by  the Director is amended, no shares may be issued under the plan as  amended until the amendment, or the plan as amended, has been approved  by the Director. Upon such approval, the permit previously issued shall  be deemed to authorize the issuance of shares under the plan as amended.  A permit or permits to issue shares under this Section may be  outstanding in addition to any outstanding permit to issue shares for  any other purpose.On or before the 25th day of each month a company which issued shares  during the preceding month under this Section shall provide the Director  with the following information and affidavit:(1) a list of the names of the individuals to whom     were issued shares during the preceding month under the stock option plan;(2) the number of shares and a description of the     shares issued to each individual;(3) the date of each issue;(4) the price per share and total price paid by each     said individual; and(5) an affidavit signed by either the president, a     vice president, the secretary, or the treasurer of the company under oath averring that the dollar consideration due from each such individual was actually received by the company before the issuance of those shares. Such information and affidavit shall be accompanied by the company's request for a certificate of paid-up capital.After receiving the information and affidavit and satisfying himself  as to the accuracy thereof, the Director shall issue a certificate of  paid-up capital which shall be recorded by the company with the recorder  of the county in which the principal office of the company is  located, within 15 days from the date of the issuance of the  certificate. No bond or cash deposit with the Director is required with  respect to shares issued under this Section.    (Source: P.A. 83-358.)