12 CFR §7.2023

1. (a)Authority to engage in reverse stock splits. A national bank may engage in a reverse stock split if the transaction serves a legitimate corporate purpose and provides adequate dissenting shareholders' rights.
2. (b)Legitimate corporate purpose. Examples of legitimate corporate purposes include a reverse stock split to:
   1. (1)Reduce the number of shareholders in order to qualify as a Subchapter S corporation; and
   2. (2)Reduce costs associated with shareholder communications and meetings.