§ 107.420. Prohibition on exercise of ownership or Control rights in Licensee before SBA approval.
138 words·~1 min read·
/us/cfr/t13/s§ 107.420·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Without prior written SBA approval, no change of ownership or Control may take effect and no officer, director, employee or other Person acting on your behalf shall:
(a)Register on your books any transfer of ownership interest to the proposed new owner(s);
(b)Permit the proposed new owner(s) to exercise voting rights with respect to such ownership interest (including directly or indirectly procuring or voting any proxy, consent or authorization as to such voting rights at any shareholders' or partnership meeting);
(c)Permit the proposed new owner(s) to participate in any manner in the conduct of your affairs (including exercising control over your books, records, funds or other assets; participating directly or indirectly in any disposition thereof; or serving as an officer, director, partner, employee or agent); or
(d)Allow ownership or Control to pass to another Person.