Ch. 579

1995 LAWS OF MARYLAND

(B) (1) A SECURITY ISSUED BY A CORPORATE LICENSEE MUST BEAR, ON
BOTH SIDES OF THE CERTIFICATE, A STATEMENT OF THE RESTRICTIONS IMPOSED
BY THIS SUBTITLE.

(2) NOTWITHSTANDING PARAGRAPH (1) OF THIS SUBSECTION, FOR A
PUBLICLY TRADED CORPORATION INCORPORATED BEFORE JANUARY 1, 1995, A
STATEMENT OF RESTRICTION IS NECESSARY ONLY FOR CERTIFICATES ISSUED BY
THE CORPORATION AFTER THE CORPORATION APPLIES FOR A LICENSE.

(C) (1) AFTER A LICENSE IS GRANTED, ANY PERSON SEEKING TO ACQUIRE
5% OR MORE IN THE TOTAL OUTSTANDING SHARES OF A LICENSEE OR 5% OR MORE
ECONOMIC INTEREST IN A LICENSEE SHALL OBTAIN THE COMMISSION'S APPROVAL
PRIOR TO THE. TRANSACTION.

(2) FAILURE TO OBTAIN APPROVAL BY THE COMMISSION OF A
TRANSFER IS GROUNDS FOR LICENSE REVOCATION.

6A-403.

(A) THE COMMISSION SHALL SANCTION A PERSON AS THE COMMISSION
CONSIDERS NECESSARY IF THE COMMISSION FINDS THAT:

(1) THE OWNER OR HOLDER OF A SECURITY OF A CORPORATE
LICENSEE OR OF A HOLDING COMPANY OR AN INTERMEDIARY COMPANY OR A
PERSON WITH AN ECONOMIC INTEREST IN A LICENSEE IS NOT QUALIFIED UNDER
THIS SUBTITLE; AND

(2) THE LICENSEE IS THEREBY NO LONGER QUALIFIED TO CONTINUE
AS A LICENSEE.

(B) SANCTIONS UNDER SUBSECTION (A) OF THIS SECTION MAY INCLUDE:

(1) SUSPENSION OR REVOCATION OF THE LICENSE; AND

(2) A CONDITION OF DISQUALIFICATION NAMING THE PERSON AND
DECLARING THAT THE PERSON MAY NOT:

(I) RECEIVE DIVIDENDS OR INTEREST ON SECURITIES OF THE
CORPORATION;

(II) EXERCISE DIRECTLY, OR THROUGH A TRUSTEE OR NOMINEE,
A RIGHT CONFERRED BY SECURITIES OF THE CORPORATION;

(III) RECEIVE REMUNERATION FROM THE LICENSEE;

(IV) RECEIVE ANY ECONOMIC BENEFIT FROM THE LICENSEE; OR

(V) CONTINUE IN AN OWNERSHIP OR ECONOMIC INTEREST IN A
LICENSEE OR REMAIN AS A MANAGER, OFFICER, DIRECTOR, OR PARTNER OF A
LICENSEE.

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