Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 25 of chapter 172 of the General Laws, as appearing in the 1994 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- Such corporation may grant options to purchase, issue and sell shares of its capital stock to its directors, officers and employees, or to a trustee on their behalf, without first offering the same to its shareholders, for such consideration, not less than par value, and upon such terms and conditions as shall be approved by its board of directors, by the holders of a majority of the stock entitled to vote with respect thereto, and by the commissioner.

SECTION 2. Section 25A of said chapter 172, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- Any such plan shall be subject to such terms and conditions as shall be approved by the board of directors of the corporation, by the holders of a majority of the stock thereof entitled to vote with respect thereto, and by the commissioner; provided, however, that any such plans established by a savings bank or a cooperative bank which has converted from mutual to stock form pursuant to section thirty-four C of chapter one hundred and sixty-eight and section twenty-six C of chapter one hundred and seventy, respectively, shall conform to regulations promulgated by federal bank regulatory agencies pursuant to 12 U.S.C. 1464 or other applicable law governing similar plans.