17-1297. Same; control shares, voting rights; affiliate and associate, defined.
17-1297
17-1297. Same; control shares, voting rights; affiliate and associate, defined.
(a) As used in this section "affiliate" means a person that
directly or indirectly controls, is controlled by, or is under common
control with, a specified person.
(b) As used in this section "associate," when used to indicate a
relationship with any person, means any of the following:
(1) Any corporation or organization of which the person is an officer,
director or partner or is, directly or indirectly, the beneficial owner of
10% or more of any class or series of shares entitled to vote or other equity interest.
(2) Any trust or estate in which the person has a substantial beneficial
interest or as to which the person serves as trustee or personal
representative or in a similar fiduciary capacity.
(3) Any relative or spouse of the person, or any relative of the spouse,
residing in the house of the person.
(c) Control shares acquired in a control share acquisition that do not
have voting rights accorded them by approval of a resolution of
shareholders shall regain their voting rights on transfer to a person other
than the acquiring person or affiliate or associate of the acquiring
person, unless the acquisition of the shares by the other person
constitutes a control share acquisition, in which case the voting rights
of the shares acquired by such other person are subject to the provisions of this act.
History: L. 1988, ch. 93, § 12; April 21.