Section R. 432.521e - Transfer of ownership interest; board approval required; exceptionsRule 521e.
(1) An interest in a licensee may only be transferred in accordance with this part.(2) Except as stated in subrules (4) and (5) of this rule, the following persons must provide notice to the board 30 days before the execution of a transfer: (a) A person that intends to transfer or acquire greater than a 5% interest in a licensee.(b) A person that, as a result of an acquisition, will acquire an interest totaling greater than 5% in a licensee.(3) The board must determine whether the person acquiring the interest is eligible and suitable under the standards set forth in the act and these rules unless the board grants the person an institutional investor exemption under these rules. Once the board determines that the person acquiring the interest is eligible and suitable under the standards set forth in the act and these rules, the executive director may approve the transfer.(4) A transfer of interest to an institutional investor that acquires or will have acquired, upon completion of the transfer, less than 25% of the equity securities of a licensee may occur without first receiving executive director approval if the equity securities are held for investment purposes only but is subject to other requirements of this part.(5) A transfer of interest in a licensee may occur if the transfer is between persons the board has found eligible and suitable for licensure during the licensing period in which the transfer occurs. In those cases, approval of the transfer must be requested no later than 30 days after the transfer, and the executive director may decide the application.(6) If approval of the transfer of interest is denied by the executive director or the person acquiring the interest is found unsuitable by the board, the transferee must divest itself of the interest within 30 days after the date of the order denying approval.Mich. Admin. Code R. 432.521e
2023 MR 20, Eff. 10/11/2023