§ 463.510 — Prior approval by Commission required for other disposition of securities issued by corporation other than publicly traded corporation; restrictions on unsuitable persons; statement on certificate

Nevada § 463.510

• Jurisdiction: Nevada
• Title 41: GAMING; HORSE RACING; SPORTING EVENTS
• Ch. 463: Licensing

Text

1. The purported sale, assignment, transfer, pledge, exercise of an option to purchase or other disposition of any security issued by a corporation, other than a publicly traded corporation, which holds a state gaming license or which is a holding company or an intermediary company for an entity that holds a state gaming license is void unless approved in advance by the Commission.
2. If at any time the Commission finds that an individual owner of any such security is unsuitable to continue as a gaming licensee in this state, the owner shall immediately offer the security to the issuing corporation for purchase. The corporation shall purchase the security so offered, for cash at fair market value, within 10 days after the date of the offer.
3. Beginning upon the date when the Commission serves notice of a determination of unsuitability pursuant to subsection 2 upon the corporation, it is unlawful for the unsuitable owner:
(a) To receive any dividend or interest upon any such security;
(b) To exercise, directly or through any trustee or nominee, any voting right conferred by such security; or
(c) To receive any remuneration in any form from the corporation, for services rendered or otherwise.
4. Every security issued by a corporation, other than a publicly traded corporation, which holds a state gaming license must bear a statement, on both sides of the certificate evidencing the security, of the restrictions imposed by this section.

Legislative History

(Added to NRS by 1967, 1586 ; A 1969, 374 ; 1983, 743 ; 1993, 187 ; 2003, 20th Special Session, 13 ; 2007, 1114 )