La. Admin. Code tit. 42 § III-2507

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-2507 - Stock Restrictions

A. Unless otherwise expressly approved by the board, all ownership securities or stock issued by a licensee, permittee, casino operator or casino manager shall bear on both sides of the certificate a statement of the restrictions containing the following inscription:

1. "The purported sale, assignment, transfer, pledge or other disposition of this security must receive prior approval of the Louisiana Gaming Control Board. The purported sale, assignment, transfer, pledge or other disposition, of any security or shares issued by the entity issuing this security is void unless approved in advance by the Louisiana Gaming Control Board. If at any time an individual owner of any such security is determined to be unsuitable under the Act and rules to continue as a permittee or suitable person, the issuing entity shall ensure that such person or persons may not receive any dividend or interest upon any such security, exercise, directly or indirectly through any trustee or nominee, any voting right conferred by such security, receive remuneration in any form from the entity or an affiliate for services rendered or otherwise, receive any economic benefit from the entity or an affiliate, or continue in an ownership or economic interest in the entity or function as a manager, officer, director or partner in the entity."

B. A publicly traded company organized and formed prior to applying for a license, permit, or casino operating contract under the provisions of the Act is only required to put the restriction on securities issued after the entity files its application for a license or permit or transfer for approval.

La. Admin. Code tit. 42, § III-2507

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 38:1625 (July 2012).

AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and 24.