Why AmerInst is a Public Company
AmerInst plays an important role in ensuring stability in the professional liability insurance market. The Board believes that the value inherent in being a public company, subject to the highest regulatory standards and supervision by the Securities and Exchange Commission, far outweighs the increased costs associated with Sarbanes-Oxley compliance. To minimize costs, we operate as a virtual company by outsourcing functions such as investment management, external communications and internal audits, to specialist firms within the U.S. Each AmerInst Board member is responsible for overseeing a specific operational function, with the primary goal of maximizing shareholder value.
The Board of Directors devotes substantial time and resources to improving the liquidity of the Companys common stock. The Buy-Sell Trading System attracted increased interest from the stockholders and resulted in the transfer of shares.The system consists of two lists, the buyers list and the sellers list. Prospective buyers may request that their names be placed on the buyers list and prospective sellers may request that their names be placed on the sellers list. Each list contains pertinent contact information as well as the number of shares to be bought or sold and at what price.Two-way quotes are prohibited.
In addition to the Buy-Sell Trading System, AmerInst repurchases shares from shareholders on a case-by-case negotiated basis.
Notwithstanding the absence of a public market for our common shares, we have a policy of having Investco, which holds our investment portfolio, purchase shares owned by our shareholders who have retired from the practice of accounting or have died. We repurchase those shares at a price equal to the greater of the last year-end net book value per share, adjusted for dividends paid during the current year.