Senate Bill No. 21
(By Senators Scott and Ross)
[Introduced January 10, 1996; referred to the Committee
on Small Business; and then to the Committee on Finance.]
A BILL to amend and reenact section twenty, article one, chapter
five-e of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the West
Virginia capital company act; and providing limitation on
Be it enacted by the Legislature of West Virginia:
That section twenty, article one, chapter five-e of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 1. WEST VIRGINIA CAPITAL COMPANY ACT.
§5E-1-20. Limitation on financial institutions.
Not more than forty-nine percent of the total capital base
of any capital company may be owned by banks, savings and loan
associations, savings banks or other financial institutions, or any affiliate thereof, as investors. No officer, employee or
director of any such financial institution may
serve on vote as
a member of the board of any capital company formed under the
provisions of this article if the matter being voted upon affects
the financial institution for which the board member serves as an
officer, employee or director.
(NOTE: The purpose of this bill is to permit bankers to sit
on the board of capital companies if they don't vote on matters
pertaining to their own interest.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.)