Md. Code Regs. 36.07.02.06

Current through Register Vol. 51, No. 24, December 2, 2024

Section 36.07.02.06 - Owners

A. If the applicant is an unincorporated business association, the application documents shall identify:

(1) Each person who exercises voting rights in the applicant; and

(2) Each person who directly or indirectly owns 5 percent or more of the business association.

B. If the applicant is authorized to issue capital stock, the applicant shall state, for each class of stock authorized, the:

(1) Total number of shares;

(2) Par value, if any;

(3) Voting rights;

(4) Current rate of dividend; and

(5) Number of shares outstanding and the market value of each share.

C. If the applicant is a corporation, the application documents shall identify each person who:

(1) Exercises voting rights in the corporation; and

(2) Directly or indirectly owns 5 percent or more of the corporation.

D. The application documents shall include a certified copy of each voting trust or voting agreement in which capital stock of the applicant is held and shall state the:

(1) Name and address of each stockholder participating in the trust or agreement;

(2) Class of stock involved; and

(3) Total number of shares held by the trust or agreement.

E. The application documents shall describe the terms of any proxy by which any capital stock may be voted and shall state the:

(1) Name and address of the person holding the proxy;

(2) Name and address of the stockholder who granted the proxy;

(3) Class of stock for which the proxy may vote; and

(4) Total number of shares voted by the proxy.

F. The application documents shall state any provisions, and the procedures by which these provisions may be modified, for the redemption, repurchase, retirement, conversion, or exchange of an ownership interest.

G. The application documents shall state whether the applicant's stock may be traded through options and whether the corporation or a stockholder has executed an agreement or contract to convey any of the corporation's or the stockholder's stock at a future date.

H. The application documents shall include a copy or a description of each agreement or contract disclosed under §G of this regulation.

I. The application documents shall include a copy of each prospectus, pro forma, or other promotional material given to potential investors about the facility.

J. The application documents shall provide full disclosure for any stock options that may exist or have been granted.

Md. Code Regs. 36.07.02.06

Regulations .06 adopted as an emergency provision effective 40:20 Md. R. 1650, eff.8/26/2013 ; adopted permanently effective 40:24 Md. R. 2019, eff.12/12/2013