SB494,68,4
1221.0505 Issued and outstanding shares. (1) Issued and outstanding
2shares.
A bank may issue the number of shares of each class or series authorized by
3the articles of incorporation. Shares that are issued are outstanding shares until
4they are reacquired, redeemed, converted or canceled.
SB494,68,9 5(2) Share requirements. At all times that shares of the bank are outstanding,
6there must be outstanding one or more shares that together have unlimited voting
7rights and one or more shares, which may be the same share or shares as those with
8unlimited voting rights, that together are entitled to receive the net assets of the
9bank upon dissolution.
SB494,68,11 10221.0506 Fractional shares. (1) Issuance and disposition. A bank may do
11any of the following:
SB494,68,1212 (a) Issue fractions of a share or pay in money the value of fractions of a share.
SB494,68,1313 (b) Arrange for disposition of fractional shares by the shareholders.
SB494,68,16 14(2) Rights of holders of fractional shares. The holder of a fractional share
15may exercise the rights of a shareholder, including the right to vote, to receive
16dividends and to participate in the assets of the bank upon liquidation.
SB494,68,19 17221.0507 Share dividends. (1) Definition. In this section, "share dividend"
18means shares issued proportionally and without consideration to the bank's
19shareholders or to the shareholders of one or more classes or series.
SB494,68,21 20(2) Power to issue share dividends. Except as provided in sub. (3) and unless
21the articles of incorporation provide otherwise, a bank may issue share dividends.
SB494,68,24 22(3) Limitiations. (a) A bank may not issue shares of one class or series as a
23share dividend in respect of shares of another class or series unless any of the
24following is satisfied:
SB494,68,2525 1. The articles of incorporation authorize the issuance.
SB494,69,2
12. A majority of the votes entitled to be cast by the class or series to be issued
2approve the issuance.
SB494,69,43 3. There are no outstanding shares of the class or series to be issued, as
4determined under par. (b).
SB494,69,85 (b) If a security is outstanding that is convertible into or carries a right to
6subscribe for or acquire shares of the class or series to be issued, the holder of the
7security is considered a holder of the class or series to be issued for purposes of
8making the determination under par. (a) 3.
SB494,69,11 9(4) Record date. If the board of directors does not fix the record date for
10determining shareholders entitled to a share dividend, it is the date on which the
11board of directors authorizes the share dividend.
SB494,69,13 12221.0508 Form and content of certificates. (1) Contents. At a minimum,
13a share certificate shall state on its face all of the following:
SB494,69,1514 (a) The name of the issuing bank and that the bank is organized under the laws
15of this state.
SB494,69,1616 (b) The name of the person to whom issued.
SB494,69,1817 (c) The number and class of shares and the designation of the series, if any, that
18the certificate represents.
SB494,69,21 19(2) Classes and series requirements. If the issuing bank is authorized to issue
20different classes of shares or different series within a class, the front or back of each
21certificate shall contain any of the following:
SB494,69,2522 (a) A summary of the designations, relative rights, preferences and limitations
23applicable to each class, and the variations in rights, preferences and limitations
24determined for each series and the authority of the board of directors to determine
25variations for future series.
SB494,70,2
1(b) A conspicuous statement that the bank will furnish the shareholder the
2information described in par. (a) on request, in writing and without charge.
SB494,70,5 3(3) Signature. (a) Each share certificate shall be signed either manually or
4in facsimile, by the officer or officers designated in the bylaws or by the board of
5directors.
SB494,70,76 (b) The validity of a share certificate is not affected if a person who signed the
7certificate no longer holds office when the certificate is issued.
SB494,70,9 8221.0509 Restriction on transfer of shares and other securities. (1)
9Definitions. In this section:
SB494,70,1110 (a) "Other securities" include securities that are convertible into or carry a right
11to subscribe for or acquire shares.
SB494,70,1312 (b) "Transfer restriction" means a restriction on the transfer or registration of
13transfer of shares and other securities of a bank.
SB494,70,18 14(2) Permitted purposes of restrictions. (a) Except as provided in par. (b), the
15articles of incorporation, the bylaws, an agreement among shareholders and holders
16of other securities, or an agreement between shareholders and holders of other
17securities and the bank, may impose a transfer restriction on shares and other
18securities of the bank for any reasonable purpose, including any of the following:
SB494,70,2019 1. Maintaining the bank's status under state or federal law when it is
20dependent on the number or identity of its shareholders.
SB494,70,2121 2. Preserving exemptions under federal or state securities law.
SB494,70,2522 (b) A transfer restriction may not affect shares and other securities issued
23before the restriction is adopted, unless the holders of the shares and other securities
24are parties to the transfer restriction agreement or vote in favor of the transfer
25restriction.
SB494,71,5
1(3) Enforceability. A transfer restriction is valid and enforceable against the
2holder or a transferee of the holder if the transfer restriction is authorized by this
3section and its existence is noted conspicuously on the front or back of the certificate.
4Unless so noted, a transfer restriction is not enforceable against a person who does
5not know of the transfer restriction.
SB494,71,8 6(4) Types of permitted transfer restrictions. The transfer restrictions
7permitted under this section include transfer restrictions that do any of the
8following:
SB494,71,119 (a) Obligate the shareholder or holder of other securities first to offer the bank
10or other persons, whether separately, consecutively or simultaneously, an
11opportunity to acquire the restricted shares or other securities.
SB494,71,1412 (b) Subject to the limitations of s. 221.0323, if applicable, obligate the bank or
13other persons, whether separately, consecutively or simultaneously, to acquire the
14restricted shares or other securities.
SB494,71,1715 (c) Require the bank, the holders of a class of its shares or other securities or
16another person to approve the transfer of the restricted shares or other securities,
17if the requirement is not manifestly unreasonable.
SB494,71,2018 (d) Prohibit the transfer of the restricted shares or other securities to
19designated persons or classes of persons, if the prohibition is not manifestly
20unreasonable.
SB494,71,22 21221.0510 Preemptive rights. (1) Definition. In this section, "other
22securities" has the meaning given in s. 221.0509 (1) (a).
SB494,72,4 23(2) When preemptive rights exist. The shareholders or holders of other
24securities of a bank do not have a preemptive right to acquire the bank's unissued
25shares or other securities except to the extent provided in the articles of

1incorporation. If the articles of incorporation state that "the bank elects to have
2preemptive rights", or words of similar meaning, subs. (3) to (6) govern the
3preemptive rights, except to the extent that the articles of incorporation expressly
4provide otherwise.
SB494,72,11 5(3) Conditions for exercise of preemptive rights. Except as provided in sub.
6(5), the shareholders or holders of other securities of the bank have a preemptive
7right, granted on uniform terms and conditions prescribed by the board of directors
8to provide a fair and reasonable opportunity to exercise the right, to acquire
9proportional amounts of the bank's unissued shares or other securities upon the
10decision of the board of directors to issue the shares or other securities, subject to the
11following conditions:
SB494,72,1412 (a) Holders of shares or other securities with general voting rights have
13preemptive rights with respect to shares and other securities of any class with
14general voting rights.
SB494,72,2015 (b) Holders of shares or other securities without preferential rights to
16distributions or assets have preemptive rights with respect to shares and other
17securities of any class without preferential rights to distributions or assets, except
18that holders of shares or other securities without general voting rights have no
19preemptive rights with respect to shares or other securities of any class with general
20voting rights.
SB494,72,23 21(4) Waiver. A shareholder or holder of other securities may waive his or her
22preemptive right. A written waiver is irrevocable even if it is not supported by
23consideration.
SB494,72,25 24(5) Exemptions. There is no preemptive right with respect to any of the
25following:
SB494,73,2
1(a) Shares or other securities issued as compensation to directors, officers or
2employes of the bank or its affiliates.
SB494,73,53 (b) Shares or other securities issued to satisfy conversion or option rights
4created to provide compensation to directors, officers or employes of the bank or its
5affiliates.
SB494,73,76 (c) Shares or other securities authorized in articles of incorporation that are
7issued within 6 months after the effective date of incorporation.
SB494,73,98 (d) Shares or other securities sold for other than money or an obligation to pay
9money.
SB494,73,1010 (e) Treasury shares.
SB494,73,17 11(6) Lapse of preemptive rights. If shares or other securities subject to
12preemptive rights are not acquired by shareholders or holders of other securities, the
13bank may issue the shares or other securities to any person for one year after being
14offered to shareholders or holders of other securities, at a consideration set by the
15board of directors that is not lower than the consideration set for the exercise of
16preemptive rights. An offer at a lower consideration or after the expiration of one
17year is subject to the preemptive rights of shareholders or holders of other securities.
SB494,73,19 18221.0511 Annual meeting. (1) When held. A bank shall hold a meeting of
19shareholders annually at a time stated in or fixed in accordance with the bylaws.
SB494,73,23 20(2) Where held. A bank may hold the annual shareholders' meeting in or
21outside this state at the place stated in or fixed in accordance with the bylaws. If no
22place is stated in or fixed in accordance with the bylaws, the bank shall hold the
23annual meeting at its principal office.
SB494,73,25 24(3) Effect of failure to comply. Failure to hold an annual meeting in one or
25more years does not affect the validity of any bank action.
SB494,74,2
1221.0512 Special meeting. (1) When required. A bank shall hold a special
2meeting of shareholders if any of the following occurs:
SB494,74,43 (a) A special meeting is called by the board of directors or any person authorized
4by the articles of incorporation or bylaws to call a special meeting.
SB494,74,85 (b) The holders of at least 10% of all the votes entitled to be cast on an issue
6proposed to be considered at the proposed special meeting sign, date and deliver to
7the bank one or more written demands for the meeting describing one or more
8purposes for which it is to be held.
SB494,74,11 9(2) Record date. If not otherwise fixed under s. 221.0517, the record date for
10determining shareholders entitled to demand a special meeting is the date that the
11first shareholder signs the demand.
SB494,74,15 12(3) Where held. A bank may hold a special shareholders' meeting in or outside
13this state at the place stated in or fixed in accordance with the bylaws. If no place
14is stated in or fixed in accordance with the bylaws, the bank shall hold a special
15meeting at its principal office.
SB494,74,18 16(4) Limitation on business conducted. Only business within the purpose
17described in the meeting notice required by s. 221.0514 (2) (b) may be conducted at
18a special shareholders' meeting.
SB494,74,21 19221.0513 Action without meeting. (1) Permitted methods. Action required
20or permitted by this chapter to be taken at a shareholders' meeting may be taken
21without a meeting in any of the following ways:
SB494,74,2322 (a) Without action by the board of directors, by all shareholders entitled to vote
23on the action.
SB494,75,524 (b) If the articles of incorporation so provide, by shareholders who would be
25entitled to vote at a meeting those shares with voting power to cast not less than the

1minimum number or, in the case of voting by voting groups, numbers of votes that
2would be necessary to authorize or take the action at a meeting at which all shares
3entitled to vote were present and voted, except action may not be taken under this
4paragraph with respect to an election of directors for which shareholders may vote
5cumulatively under s. 221.0522.
SB494,75,9 6(2) How documented. Action under sub. (1) must be evidenced by one or more
7written consents describing the action taken, signed by the number of shareholders
8necessary to take the action under sub. (1) (a) or (b) and delivered to the bank for
9inclusion in the bank records.
SB494,75,16 10(3) Effective date. Action taken under sub. (1) is effective when consents
11representing the required number of shares are delivered to the bank, unless the
12consent specifies a different effective date. Within 10 days after action taken under
13sub. (1) (b) is effective, the bank shall give notice of the action to shareholders who,
14on the record date determined under sub. (4), were entitled to vote on the action but
15whose shares were not represented on the written consent. The notice shall comply
16with s. 221.0103.
SB494,75,19 17(4) Record date. If not otherwise fixed under s. 221.0518, the record date for
18determining shareholders entitled to take action without a meeting is the date that
19the first shareholder signs the consent under sub. (1).
SB494,75,21 20(5) Effect of written consent. A consent signed under this section has the
21effect of a meeting vote and may be described as such in any document.
SB494,76,4 22(6) Notice requirements. If this chapter requires that notice of proposed action
23be given to shareholders who are not entitled to vote on the action and the action is
24to be taken under this section, the bank shall give those nonvoting shareholders
25written notice of the proposed action at least 10 days before the action becomes

1effective. The notice shall comply with s. 221.0103 and shall contain or be
2accompanied by the same material that, under this chapter, would have been
3required to be sent to nonvoting shareholders in a notice of meeting at which the
4proposed action would have been submitted to the shareholders for action.
SB494,76,11 5221.0514 Notice of meeting. (1) When required. A bank shall notify
6shareholders of the date, time and place of each annual and special shareholders'
7meeting not less than 10 days nor more than 60 days before the meeting date, unless
8a different time is provided by this chapter, the articles of incorporation or the
9bylaws. The notice shall comply with s. 221.0103. Unless this chapter or the articles
10of incorporation require otherwise, the bank is required to give notice only to
11shareholders entitled to vote at the meeting.
SB494,76,14 12(2) Content of notices. (a) Unless this chapter or the articles of incorporation
13require otherwise, notice of an annual meeting need not include a description of the
14purpose for which the meeting is called.
SB494,76,1615 (b) Notice of a special meeting shall include a description of each purpose for
16which the meeting is called.
SB494,76,20 17(3) Record date. If not otherwise fixed under s. 221.0517, the record date for
18determining shareholders entitled to notice of and to vote at an annual or special
19shareholders' meeting is the close of business on the day before the first notice is
20given to shareholders.
SB494,76,25 21(4) Adjournment. (a) Unless the bylaws require otherwise and except as
22provided in par. (b), if an annual or special shareholders' meeting is adjourned to a
23different date, time or place, the bank is not required to give notice of the new date,
24time or place if the new date, time or place is announced at the meeting before
25adjournment.
SB494,77,3
1(b) If a new record date for an adjourned meeting is or must be fixed under s.
2221.0517 (3), the bank shall give notice of the adjourned meeting under this section
3to persons who are shareholders as of the new record date.
SB494,77,7 4221.0515 Disclosure to shareholders. The bank shall include with each
5notice of an annual meeting delivered to shareholders copies for the 2 preceding fiscal
6years of the bank's balance sheets, statements of profit and loss and reconcilements
7of the bank's loan loss reserve.
SB494,77,14 8221.0516 Waiver of notice. (1) Written waiver. A shareholder may waive
9any notice required by this chapter, the articles of incorporation or the bylaws before
10or after the date and time stated in the notice. The waiver shall be in writing and
11signed by the shareholder entitled to the notice and contain the same information
12that would have been required in the notice under any applicable provisions of this
13chapter, except that the time and place of meeting need not be stated. The
14shareholder shall deliver the waiver to the bank for inclusion in the bank records.
SB494,77,16 15(2) Waiver by attendance. A shareholder's attendance at a meeting, in person
16or by proxy, waives objection to all of the following:
SB494,77,1917 (a) Lack of notice or defective notice of the meeting, unless the shareholder at
18the beginning of the meeting or promptly upon arrival objects to holding the meeting
19or transacting business at the meeting.
SB494,77,2220 (b) Consideration of a particular matter at the meeting that is not within the
21purpose described in the meeting notice, unless the shareholder objects to
22considering the matter when it is presented.
SB494,78,3 23221.0517 Record date. (1) Manner of fixing date. The bylaws may fix or
24provide the manner of fixing a future date as the record date for one or more voting
25groups in order to determine the shareholders entitled to notice of a shareholders'

1meeting, to demand a special meeting, to vote or to take any other action. If the
2bylaws do not fix or provide for fixing a record date, the board of directors may fix a
3future date as the record date.
SB494,78,5 4(2) Limit on date. A record date fixed under this section may not be more than
570 days before the meeting or action requiring a determination of shareholders.
SB494,78,10 6(3) Effect of adjournment. (a) Except as provided in par. (b), a
7determination of shareholders entitled to notice of or to vote at a shareholders'
8meeting is effective for any adjournment of the meeting unless the board of directors
9fixes a new record date, which it shall do if the meeting is adjourned to a date more
10than 120 days after the date fixed for the original meeting.
SB494,78,1311 (b) If a court orders a meeting adjourned to a date more than 120 days after the
12date fixed for the original meeting, it may provide that the original record date
13continues in effect or it may fix a new record date.
SB494,78,18 14221.0518 Shareholders' list for meeting. (1) Preparation of list. After
15fixing a record date for a meeting, a bank shall prepare a list of the names of all its
16shareholders who are entitled to notice of a shareholders' meeting. The list shall be
17arranged by class or series of shares and show the address of and number of shares
18held by each shareholder.
SB494,79,2 19(2) Availability prior to meeting. The bank shall make the shareholders' list
20available for inspection by any shareholder, beginning 2 business days after notice
21of the meeting is given for which the list was prepared and continuing to the date of
22the meeting, at the bank's principal office or at a place identified in the meeting
23notice in the city where the meeting will be held. A shareholder or his or her agent
24or attorney may, on written demand, inspect and copy the list, during regular

1business hours and at his or her expense, during the period that it is available for
2inspection under this subsection.
SB494,79,5 3(3) Availability at meeting. The bank shall make the shareholders' list
4available at the meeting. A shareholder or his or her agent or attorney may inspect
5the list at any time during the meeting or an adjournment.
SB494,79,12 6(4) Refusal to allow inspection. If the bank refuses to allow a shareholder
7or his or her agent or attorney to inspect the shareholders' list before or at the
8meeting, or to copy the list as permitted by sub. (2), on petition of the shareholder,
9the circuit court for the county where the bank's principal office is located may, after
10notice to the bank and an opportunity to be heard, order the inspection or copying
11at the bank's expense. The court may also postpone the meeting for which the list
12was prepared until the inspection or copying is complete.
SB494,79,15 13(5) Effect of failure to comply. Refusal or failure to prepare or make
14available the shareholders' list does not affect the validity of action taken at the
15meeting.
SB494,79,17 16221.0519 Proxies. (1) Exercise of vote. A shareholder may vote his or her
17shares in person or by proxy.
SB494,79,21 18(2) Method of appointing a proxy. A shareholder may appoint a proxy to vote
19or otherwise act for the shareholder by signing an appointment form, either
20personally or by his or her attorney-in-fact. An appointment of a proxy may be in
21durable form as provided in s. 243.07.
SB494,79,25 22(3) When proxy is effective. An appointment of a proxy is effective when
23received by an officer or agent of the bank authorized to tabulate votes. An
24appointment is valid for 11 months from the date of its signing unless a different
25period is expressly provided in the appointment form.
Loading...
Loading...