Mich. Admin. Code R. 432.521e - Transfer of ownership interest; board approval required; exceptions
Rule 521e.
(1) An
interest in a licensee may only be transferred in accordance with this
part.
(2) Except as stated in
subrules (4) and (5) of this rule, the following persons must provide notice to
the board 30 days before the execution of a transfer:
(a) A person that intends to transfer or
acquire greater than a 5% interest in a licensee.
(b) A person that, as a result of an
acquisition, will acquire an interest totaling greater than 5% in a
licensee.
(3) The board
must determine whether 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 exemption under these rules.
Once the board determines that the person acquiring the interest is eligible
and suitable under the standards set forth in the act and these rules, the
executive director may approve the transfer.
(4) A transfer of interest to an
institutional investor that acquires or will have acquired, upon completion of
the transfer, less than 25% of the equity securities of a licensee may occur
without first receiving executive director approval if the equity securities
are held for investment purposes only but is subject to other requirements of
this part.
(5) A transfer of
interest in a licensee may occur if the transfer is between persons the board
has found eligible 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.
(6) If
approval of the transfer of interest is denied by the executive director or the
person acquiring the interest is found unsuitable by the board, the transferee
must divest itself of the interest within 30 days after the date of the order
denying approval.
Notes
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