68 IAC 3.1-2-4 Required charter provisions

Sec. 4. (a) A casino owner's licensee or applicant that is not publicly traded, and its substantial owners, shall adopt charter provisions which create the absolute right of the casino owner's licensee to repurchase or redeem any security, share, or other interest in the licensee in the event: (1) a holder of equity in the casino owner's licensee is found to be unsuitable and is required to dispose of the holder's interest in a casino owner's license; or (2) the casino owner's licensee or applicant determines ongoing association with the holder of the equity interest undermines the casino owner's licensee's suitability or ongoing compliance with commission statute and rules. (b) The casino owner's licensee or applicant that is not publicly traded, and its substantial owners, shall file with the commission the adopted charter provisions necessary to establish the right of the commission and the casino owner's licensee or applicant to repurchase or redeem securities, shares, or other interests in the casino owner's licensee or applicant, and its substantial owners, and the conditions for divestiture. (c) In the event of repurchase or redemption in accordance with this section, the casino owner's licensee or applicant that is not publicly traded, and its substantial owners, shall immediately offer the security to the issuing corporation for purchase. The corporation shall repurchase or redeem the security so offered, for cash, within ten (10) days after the date of the offer. (d) Beginning upon the date when the casino owner's licensee or applicant that is not publicly traded, its substantial owners, or the commission serves notice of repurchase under this section, the equity holder subject to the repurchase shall not: (1) receive any dividend or interest upon the security; (2) exercise, directly or through a trustee or nominee, a voting right conferred by the security; or (3) receive remuneration in any form from the corporation, for services rendered or otherwise.