National bank reverse stock splits.

§ 7.2023 National bank 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]