N.Y. Comp. Codes R. & Regs. tit. 14 § 573.2

Current through Register Vol. 46, No. 43, October 23, 2024

Section 573.2 - Special requirements for eligibility for operating certificates applicable to business corporations

(a) No business corporation shall be eligible for issuance of an operating certificate unless the following requirements have been met as established by documents submitted to the commissioner:

(1) The corporate powers and purposes stated in the certificate of incorporation shall specify the ownership and operation, or operation, of a facility or facilities specifically named, the location or locations of which are specifically designated.

(2) The corporate powers and purposes as stated in the certificate of incorporation shall not include any powers or purposes which are not necessary to the operation of a facility as defined in section 72.3 of this Title.

(3) The location of the principal office of the corporation shall be the same as that of a facility which is to be operated by the corporation in the State of New York.

(4) No person shall own more than 10 percent of the shares of stock of the corporation or control more than 10 percent of the voting rights of the corporation unless prior written approval by the commissioner has been obtained.

(5) The corporation shall obtain prior written approval by the commissioner of all incorporators or directors of record as to their character and experience.

(b) An operating certificate issued to a business corporation shall be surrendered to the office at the time of any transfer of ownership of shares of stock or of control of voting rights of the corporation unless the following requirements have been met:

(1) both parties to the transfer shall be identified in writing to the commissioner;

(2) the number of shares of stock and votes and the percentage of outstanding shares of stock and votes included in the transfer are stipulated in writing to the commissioner;

(3) any party acquiring shares of stock or voting rights shall identify in writing to the commissioner the immediate source to him of any consideration of value exchanged for shares of stock or voting rights; and

(4) in the case of any transfer of stock or voting rights which is stipulated to be a gift, the relationship between the parties to the transfer shall be stated in writing to the commissioner.

(c) No business corporation shall be eligible to hold an operating certificate if it is owned in whole or in part by another corporation, a limited partnership, or a partnership any of the members of which are not natural persons.

N.Y. Comp. Codes R. & Regs. Tit. 14 § 573.2