(a) Definitions. In this section, "owner of stock" means anyone who participates or has a vested right to participate in the capital payments, profits, or percentage of income from stock, or has a right under any set of circumstances to convert debt into an ownership interest in stock.
(b) Stock ownership. A commercial bingo licensee shall maintain records of owners of stock of the licensee so that the names of all persons, including corporations, trusts, estates, and partnerships that are the beneficial owners of the stock, are disclosed regardless of the manner in which, or whether or not, the ownership interest is stated or registered on the stock of the licensee. A licensee shall include in its charter a prohibition against any person owning stock in the licensee unless the name of that person is listed as an owner in the corporate stock book and the person provides the affidavits required by this section.
(c) Affidavits. A commercial bingo licensee shall obtain, at least once every calendar year, pursuant to written notice to the record owners of all stock of the licensee, an affidavit from each record owner of the stock of the licensee sworn to under the penalty of perjury, stating to the best of the affiant's knowledge, information, and belief:
(1) if any person other than the affiant has any right of beneficial ownership of any kind in the stock held in the name of the affiant, or if the stock held in the name of the affiant is pledged, promised, or guaranteed as security to another person;
(2) the name and address of the other person; and
(3) the amount and nature of the ownership.
The Director may limit the ownership that must be reported in an affidavit to 10% or more of the beneficial ownership of the licensee. The Director shall consider the number of stockholders and the burden to the licensee and if the licensee is a public corporation whose annual reports are publicly available.
(d) Beneficial ownership in stock. If the commercial bingo licensee receives information indicating that a person other than the record owner has a beneficial ownership interest in stock of the licensee, the licensee shall request promptly by written notice to the other person that this person submit to the licensee within 60 days from the date of the notice an affidavit stating, to the best of the affiant's knowledge, information, and belief:
(1) if the affiant has any right of ownership in stock of the licensee attributed to the affiant in the notice and the amount and nature of the ownership;
(2) if any person other than the affiant and the record owner has any right of ownership of any kind in stock of the licensee attributed to the affiant by the notice of the affiant; and
(3) the amount and nature of the ownership of any other person.
(e) Change in stock ownership. Any change in the record ownership or beneficial ownership of stock of any commercial bingo licensee shall be reported promptly to the Director. On a failure of a licensee to maintain and report records of ownership of stock as required by this section or the failure of a licensee to make a reasonable effort to obtain the affidavits required by this section, the Director may suspend or revoke the license.
(1985 Code, Art. 16, § 2-310) (Bill No. 96-91)