§ 583-A. Changes in control.
546 words·~2 min read·
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§ 583-a. Changes in control. 1. It shall be unlawful except with the
prior approval of the superintendent for any action to be taken which
results in a change of control of the business of a licensee. Prior to
any change of control, the person desirous of acquiring control of the
business of a licensee shall make written application to the
superintendent and pay an investigation fee as prescribed pursuant to
section eighteen-a of this chapter to the superintendent. The
application shall contain such information as the superintendent, by
rule or regulation, may prescribe as necessary or appropriate for the
purpose of making the determination required by subdivision two of this
section.
2. The superintendent shall approve or disapprove the proposed change
of control of a licensee in accordance with the provisions of section
five hundred eighty-one of this article. The superintendent shall
approve or disapprove the application in writing within ninety days
after the date the application is filed with the superintendent.
3. For a period of six months from the date of qualification thereof
and for such additional period of time as the superintendent may
prescribe, in writing, the provisions of subdivisions one and two of
this section shall not apply to a transfer of control by operation of
law to the legal representative, as hereinafter defined, of one who has
control of a licensee. Thereafter, such legal representative shall
comply with the provisions of subdivisions one and two of this section.
The provisions of subdivisions one and two of this section shall be
applicable to an application made under such section by a legal
representative.
The term "legal representative", for the purposes of this section,
shall mean one duly appointed by a court of competent jurisdiction to
act as executor, administrator, trustee, committee, conservator or
receiver, including one who succeeds a legal representative and one
acting in an ancillary capacity thereto in accordance with the
provisions of such court appointment.
4. As used in this section:
(a)the term "person" includes an
individual, partnership, corporation, association or any other
organization, and
(b)the term "control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the
management and policies of a licensee, whether through the ownership of
voting stock of such licensee, the ownership of voting stock of any
person which possesses such power or otherwise. Control shall be
presumed to exist if any person, directly or indirectly, owns, controls
or holds with power to vote ten per centum or more of the voting stock
of any licensee or of any person which owns, controls or holds with
power to vote ten per centum or more of the voting stock of any
licensee, but no person shall be deemed to control a licensee solely by
reason of being an officer or director of such licensee or person. The
superintendent may in his discretion, upon the application of a licensee
or any person who, directly or indirectly, owns, controls or holds with
power to vote or seeks to own, control or hold with power to vote any
voting stock of such licensee, determine whether or not the ownership,
control or holding of such voting stock constitutes or would constitute
control of such licensee for purposes of this section.