Current through Register Vol. 46, No. 39, September 25, 2024
(a) No
business corporation shall be eligible for issuance of an operating certificate
unless the following requirements have been met as established by documents
submitted to the commissioner:
(1) The
corporate powers and purposes stated in the certificate of incorporation shall
specify the ownership and operation, or operation, of a facility or facilities
specifically named, the location or locations of which are specifically
designated.
(2) The corporate
powers and purposes as stated in the certificate of incorporation shall not
include any powers or purposes which are not necessary to the operation of a
facility as defined in section 72.3 of this Title.
(3) The location of the principal office of
the corporation shall be the same as that of a facility which is to be operated
by the corporation in the State of New York.
(4) No person shall own more than 10 percent
of the shares of stock of the corporation or control more than 10 percent of
the voting rights of the corporation unless prior written approval by the
commissioner has been obtained.
(5)
The corporation shall obtain prior written approval by the commissioner of all
incorporators or directors of record as to their character and
experience.
(b) An
operating certificate issued to a business corporation shall be surrendered to
the office at the time of any transfer of ownership of shares of stock or of
control of voting rights of the corporation unless the following requirements
have been met:
(1) both parties to the
transfer shall be identified in writing to the commissioner;
(2) the number of shares of stock and votes
and the percentage of outstanding shares of stock and votes included in the
transfer are stipulated in writing to the commissioner;
(3) any party acquiring shares of stock or
voting rights shall identify in writing to the commissioner the immediate
source to him of any consideration of value exchanged for shares of stock or
voting rights; and
(4) in the case
of any transfer of stock or voting rights which is stipulated to be a gift, the
relationship between the parties to the transfer shall be stated in writing to
the commissioner.
(c) No
business corporation shall be eligible to hold an operating certificate if it
is owned in whole or in part by another corporation, a limited partnership, or
a partnership any of the members of which are not natural persons.
