Section R. 432.1507 - Proscribed activities with respect to unsuitable personsRule 507.
(1) In refusing to grant approval for the transfer and acquisition of an interest covered by this part, the board may determine that a person seeking approval is not qualified to hold an interest in a person that has applied for or holds a casino license or supplier license in Michigan under the standards for qualification and licensure under the act and these rules.(2) After the board serves a notice of denial on a person who applied for approval of a transfer and acquisition of an interest subject to this part, then the person that has applied for or holds a casino license or supplier license in Michigan shall not do any of the following:(a) Pay, to the person whose application was denied or who was found to be unqualified and unsuitable, any dividend or interest on equity securities or make any other payment or distribution, except as permitted by the board.(b) Recognize the exercise, by the person whose application was denied or was found to be unqualified and unsuitable, directly or indirectly, or through any proxy, trust, or nominee, of any voting right conferred by any securities or interest in any securities or recognize other control or ownership by the person.(c) Pay, to the person whose application was denied or was found to be unqualified and unsuitable, remuneration for services rendered.(d) Fail to pursue all lawful efforts to require the person whose application was denied to relinquish all securities, including, if necessary, the immediate repurchase of the equity securities from the person.Mich. Admin. Code R. 432.1507