§ 32B-8a-202. Effect of transfer of ownership of business entity. (Effective 7/1/2014)

(1)

(a) When the ownership of 51% or more of the shares of stock of a corporation is acquired by or transferred to one or more persons who did not hold the ownership of 51% of those shares of stock on the date a retail license is issued to the corporation, the corporation shall comply with this chapter to transfer the retail license to the corporation as if the corporation is newly constituted.

(b) When there is a new general partner or when the ownership of 51% or more of the capital or profits of a limited partnership is acquired by or transferred to one or more persons as general or limited partners and who did not hold ownership of 51% or more of the capital or profits of the limited partnership on the date a retail license is issued to the limited partnership, the limited partnership shall comply with this chapter to transfer the retail license to the limited partnership as if the limited partnership is newly constituted.

(c) When the ownership of 51% or more of the interests in a limited liability company is acquired by or transferred to one or more persons as members who did not hold ownership of 51% or more of the interests in the limited liability company on the date a retail license is issued to the limited liability company, the limited liability company shall comply with this chapter to transfer the retail license to the limited liability company as if the limited liability company is newly constituted.

(2) A business entity may not transfer a retail license under this section unless, before the filing of the transfer application with the department, the business entity initiating the transfer complies with Section 32B-8a-301.

(3) If a business entity fails to comply with this section within 30 days of the day on which the event described in Subsection (1) occurs, the business entity's retail license is automatically forfeited.

Revisor instructions Chapter 349, 2013 General Session
Enacted by Chapter 334, 2011 General Session