Mich. Admin. Code R. 432.1218 - Related party contracts or transactions
Rule 218.
(1)
Unless otherwise directed by the board, the internal control procedures for
disclosure and approval of related party contracts or transactions do not apply
to any of the following transactions:
(a)
Transactions between a casino licensee or a casino license applicant and a
supplier licensee.
(b) The payment
of dividends or other distributions to shareholders.
(c) Scheduled repayments of related party
debt.
(2) A related
party transaction shall be in compliance with the internal control procedures
set forth in these rules and both of the following provisions:
(a) A related party transaction or series of
related transactions reasonably anticipated to be greater than $250,000.00 in a
12-month period shall be subject to approval by the board of directors, the
owner, or a designee of equivalent level.
(b) A reputable and independent organization
which is knowledgeable in the area of related party transactions or contracts
and which is approved by the board shall provide a written favorable fairness
opinion for all related party contracts, transactions, or series of
transactions expected to be more than $5,000,000.00, unless otherwise directed
by the board.
Notes
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