Mich. Admin. Code R. 432.1501 - Applicability of part; transfer of ownership interest; limitation
Rule 501.
(1) An
interest in a person applying for or holding a casino license or supplier
license may only be transferred in accordance with this part. Except as stated
in subrules (3) and (5) of this rule, the following persons must receive board
approval before transferring the interest:
(a) A person that transfers or acquires
greater than a 5% interest in a publicly traded corporation that has applied
for or holds a casino license or supplier license in this state.
(b) A person that will, as a result of an
acquisition approved by the board, have acquired an interest totaling greater
than 5% of a publicly traded corporation that has applied for or holds a casino
license or supplier license.
(c) A
person that transfers or acquires greater than a 1% interest in a person, other
than a publicly traded corporation, that has applied for or holds a casino
license or supplier license in this state.
(d) A person who will, as a result of an
acquisition approved by the board, have acquired an interest totaling greater
than 1% in a person, other than a publicly traded corporation, that has applied
for or holds a casino license or supplier license in this state.
(2) Before or when the board
approves a transfer of interest, it must determine that the person acquiring
the interest is eligible and suitable under the standards set forth in the act
and these rules, unless the board grants the person an institutional-investor
waiver under these rules or under section 6c of the act, MCL
432.206c.
(3) A transfer of
interest to an institutional investor that acquires or will have acquired, upon
completion of the transfer, less than 15% of the equity securities of a person
that applies for or holds a casino license or supplier license may occur
without first receiving board approval but is subject to other requirements of
this part.
(4) The organizational
documents of all persons who have applied for or hold a casino license or
supplier license must contain a provision stating that transfers of ownership
interests in the applicant or licensee may only be made in accordance with this
rule.
(5) A transfer of interest in
a supplier licensee may occur without first receiving board approval if the
transfer is between persons the board has found eligible, qualified, and
suitable for licensure during the licensing period in which the transfer
occurs. In those cases, approval of the transfer must be requested no later
than 30 days after the transfer, and the executive director may decide the
application. If approval is denied, the transferee must divest itself of the
interest within 30 days after the date of the order denying approval.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.