1845.

LAWS OF MARYLAND,

CHAP. 291.

Make and ex-
ecute contract.

SEC. 14. And be it enacted, That the president shall
have power to make and execute contracts of insurance
in behalf of the company, but the board by a by-law, re-
strict the authority of the president in this respect, and a
larger sum than twenty thousand dollars shall not be
taken on any one risk, except by the express direction
of the board.

Notes or obli-
gations, &c.
signed by the
president, &c.

SEC. 15. And be it enacted, That all notes or obli-
gations, except policies of insurance, shall be signed by
the president and countersigned by two of the directors,
and no promissory note or obligation, except contracts
of insurance, shall be given without the previous vole of
the board of directors.

No director
shall be pre-
sent.

SEC. 16. And be it enacted, That no director or other
person shall be present unless requested, at any meeting
of the board, when any business in which he is interested
shall be finally determined and passed upon.

Annual divi-
dend statem'nt
shall be made.

SEC. 17. And be it enacted, That on the thirty-first day
of December, of the second year after the day on which
the first policy of the company shall have been issued
and bear date, or within one month thereafter, and on
the same day of every subsequent year, an annual divi-
dend statement shall be made, which shall contain a lair
estimate of the nett profits of the company not before
divided, up to and including the thirty-first day of De-
cember, of each and every year, taking into view the
probable amount to be paid on all claims and demands,
which have been or may be made against said company,
and allowing for any previous deficiencies, and after as-

certaining in this mode the nett profits of each period on

Declare a divi-
dend.

risks marked off, the board may declare a dividend, and
the officers of the company issue certificates of a certain
per centum on the premiums received during such pe-
riod for such marked off risks, to the persons in whose
names the policies of insurance were originally made, or
to their representatives, and to the holders of certificates
of stock, or their representatives, the said persons in-
suring and the said holders of certificates of stock, sha-

Sharing the a-
mounts pro-

rata.

ring the amount thus actually earned, pro rata accord-
ing to the premiums paid, or the amount of interest for
such period, payable on the stock held by them respec-
tively, which certificates shall be designated certificates
of profits, and may be issued as hereinafter provided for,
and the amounts named in such certificates shall be con-
clusive upon the parties entitled to receive them at such
periods, and not be changed by subsequent events, show-
ing the actual payments to be more or less favorable than