75-76-207 - Approval of commission required for any disposition of securities of licensed corporation; finding of unsuitability of individual owner of security; effect of finding of unsuitability; cer - Mississippi Statutes

§ 75-76-207. Approval of commission required for any disposition of securities of licensed corporation; finding of unsuitability of individual owner of security; effect of finding of unsuitability; certificate evidencing security to bear statement of restrictions.
 

(1)  The purported sale, assignment, transfer, pledge or other disposition of any security issued by a corporation which holds a state gaming license or the granting of an option to purchase such a security is void unless approved in advance by the commission. 

(2)  If at any time the commission finds that an individual owner of any such security is unsuitable to continue as a gaming licensee in this state, the owner shall immediately offer the security to the issuing corporation for purchase. The corporation shall purchase the security so offered, for cash at fair market value, within ten (10) days after the date of the offer. 

(3)  Beginning upon the date when the commission serves upon the corporation notice of a determination of unsuitability pursuant to subsection (2), it is unlawful for the unsuitable owner: 

(a) To receive any dividend or interest upon any such security; 

(b) To exercise, directly or through any trustee or nominee, any voting right conferred by such security; or 

(c) To receive any remuneration in any form from the corporation, for services rendered or otherwise. 

(4)  Every security issued by a corporation which holds a gaming license must bear a statement, on both sides of the certificate evidencing the security, of the restrictions imposed by this section. 
 

Sources: Laws,  1990 Ex Sess, ch. 45, § 105, eff from and after passage (approved June 29, 1990).