<html> <head> <title>Rule 20:43:06:04 Change in ownership or management..</title> <META NAME="Keywords" Content="Administrative Rules 20:43:06:04"> <META NAME="Description" Content="Administrative Rules 20:43:06:04 Change in ownership or management.."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 15 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4;} @font-face {font-family:Times; panose-1:2 2 6 3 5 4 5 2 3 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; font-size:10.0pt; font-family:"Times",serif; color:black;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline;} a:visited, span.MsoHyperlinkFollowed {color:#954F72; text-decoration:underline;} .MsoChpDefault {font-size:10.0pt; color:black;} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US link=blue vlink="#954F72"> <div class=WordSection1> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:43:06:04.&nbsp;&nbsp;</b></span><b><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Change in ownership or management</span></b><b><span style='font-size:12.0pt;font-family: "Times New Roman",serif'>.</span></b><span style='font-size:12.0pt;font-family: "Times New Roman",serif'> Prior to any change in ownership or</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>management of an entity registered under S</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>D</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>CL </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>c</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>hapter 47-12, including any proposed admission, removal, or change of a director, manager, member</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> partner</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> or shareholder</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> the entity</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>shall provide notice of the proposed action to the board, at least thirty days prior to the action, on</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>a form prescribed by the board. In its notice, the entity shall provide the board with the name</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>, </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>license or registration number and status</span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'> and address of any proposed director, manager</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>, </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>member, pa</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>rt</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>ner, or shareholder</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> if applicable</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> and a description of the proposed change in</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>ownership. Any change in ownership under this section</span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'> other than removal of a director</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>, </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>manager, member</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>, </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>partner, or shareholder</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> must be approved by the board for the entity to</span><span style='font-size:12.0pt;font-family: "Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family: "Times New Roman",serif'>maintain its certificate of registration under S</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>D</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>CL </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>c</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>hapter 47-12. The board shall have the</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>authority to request additional information or to hold any other proceeding necessary for the</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>evaluation and approval of any change in ownership.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> SL 1975, ch 16, &#167;&nbsp;1; 6 SDR 87, effective March 2, 1980; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 44 SDR 101, effective December 18, 2017.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=36-6A-14">36-6A-14</A></span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>(20), 47-12-1, 47-12-3, 47-12-8</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>36-6A-14(19), </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>47-12-8.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;</span></p> </div> </body> </html>