AGO 1996-165.

• Case Date: March 27, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-165. 1996-165March 27, 1996Honorable John R. Phillips City Attorney, City of Oxford Suite 810 AmSouth Building Anniston, AL 36201 Municipalities - Stock and Stockholders - Insurance CompaniesCity which is given stock should sell stock as soon as it is economically feasible.Dear Mr. Phillips: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTION Can the City retain the stock issued to it by Guarantee Mutual Life when the said Guarantee Mutual Company became a stock company? FACTS AND ANALYSIS While a municipality cannot buy stock, there appears to be no prohibition against accepting stock given to the municipality, as any other gift or donation is received. Your request notes that at the time the stock was issued Guarantee Mutual Life was the reinsurer on the city health plan and this stock was issued as a result of that relationship, which no longer exists. ...