05- 071 C.M.R. ch. 150, § 7

Current through 2024-51, December 18, 2024

Section 071-150-7 - Change of Ownership

A. Nontransferability

Certificates of Approval issued to a person pursuant to this Chapter are not transferable. Prior to the effective date of any of the transactions specified in subsections B-D below, the new owner must have applied for and received approval in order for operation of an existing school to continue.

B. Sole Proprietors

Certificates of Approval issued to a sole proprietor shall become void upon the voluntary or involuntary sale or transfer to any other person of the school or any ownership interest in the school other than a bona fide mortgage or security interest.

A sole proprietor shall notify the Commissioner of any impending sale or transfer within the scope of this subsection at least 45 days prior to the effective date of the transaction.

C. Partnerships

1. Certificates of Approval issued to a partnership shall become void upon:

a. the voluntary of involuntary sale or transfer to any other person of the school or any ownership interest in the school other than a bona fide mortgage or security interest; or

b. any change in the composition of the partnership other than the reallocation of the ownership interests of the existing partners or the withdrawal of a partner.

2. A partnership shall notify the Commissioner of any impending sale, transfer or change in composition within the scope of this subsection at least 45 days prior to the effective date of the transaction.

D. Corporations

1. An initial or renewal certificate of approval issued to a corporation shall become void upon:

a. the voluntary or involuntary sale or transfer to any other person of the school or any ownership interest in the school other than a bona fide mortgage or security interest;

b. any change in ownership of the corporations stock other than (a) the sale or transfer of stock among existing shareholders or (b) the sale or transfer of stock in publicly traded companies; or

c. the issuance of additional stock in a company that is not publicly traded to a person who is not a current shareholder.

2. A Corporation shall notify the Commissioner of any sale, transfer, change in stock ownership or new issue within the scope of this subsection at least 45 days prior to the effective date of the transaction.

05- 071 C.M.R. ch. 150, § 7