R 432.1507 Proscribed activities with respect to unsuitable persons.

Rule 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 this state, under the standards for qualification and licensure under the act and these rules. (2) After the board serves an order of denial on a person who applied for approval of a transfer and acquisition of an interest subject to this part, the person that has applied for or holds a casino license or supplier license in this state 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 another payment or distribution, except as allowed 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.