SECTIONS 28550-28552 - California Statutes

CORPORATIONS CODE

SECTION 28550-28552

28550. No person shall, except with the prior written approval of
the commissioner, acquire control of a licensee.

28551. The commissioner shall approve an application for approval
to acquire control of a licensee only if, after notice and a hearing,
the commissioner finds all of the following:
(a) That the applicant and the directors and officers of the
applicant are of good character and sound financial standing.
(b) That it is reasonable to believe that, if the applicant
acquires control of the licensee, the applicant will comply with all
applicable provisions of this division and of any regulation or order
issued under this division.
(c) That the applicant's plans, if any, to make any major change
in the business, corporate structure, or management of the licensee
are not detrimental to the safety and soundness of the licensee or
the accredited investors of the licensee, or to the public
convenience and advantage.

28552. (a) For purposes of Section 28551, the commissioner may
find:
(1) That an applicant or a director or officer of an applicant is
not of good character if the person has been convicted of, or has
pleaded nolo contendere to, a crime involving fraud or dishonesty.
(2) That an applicant's plan to make a major change in the
management of a licensee is detrimental to the safety and soundness
of the licensee or the accredited investors of the licensee and to
the public convenience and advantage if the plan provides for a
person who has been convicted of, or has pleaded nolo contendere to,
a crime involving fraud or dishonesty to become a director or officer
of the licensee.
(b) Subdivision (a) shall not be deemed to be the only grounds
upon which the commissioner may find, for purposes of Section 28551,
that an applicant or a director or officer of an applicant is not of
good character or that an applicant's plan to make a major change in
the management of a licensee is detrimental to the safety and
soundness of a licensee or to the accredited investors of the
licensee, or to the public convenience and advantage.