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Title 12: Banks and Banking
CHAPTER I: COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY
PART 7: BANK ACTIVITIES AND OPERATIONS
Subpart B: Corporate Practices
7.2023 - Reverse stock splits.
(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.
(b) Legitimate corporate purpose. Examples of legitimate corporate purposes include a reverse stock split to:
(1) Reduce the number of shareholders in order to qualify as a Subchapter S corporation; and
(2) Reduce costs associated with shareholder communications and meetings.
[64 FR 60099, Nov. 4, 1999]
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