Texas Alcoholic Beverage Code 28.04 – Change in Corporate Control
Current as of: 2024 | Check for updates
|
Other versions
(a) A mixed beverage permit held by a corporation may not be renewed if the commission or administrator finds that legal or beneficial ownership of over 50 percent of the stock of the corporation has changed since the time the original permit was issued.
(b) The commission or administrator may adopt reasonable rules and regulations in accordance with the provisions of this section.
Terms Used In Texas Alcoholic Beverage Code 28.04
- Commission: means the Texas Alcoholic Beverage Commission. See Texas Alcoholic Beverage Code 1.04
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Mixed beverage: means one or more servings of a beverage composed in whole or part of an alcoholic beverage in a sealed or unsealed container of any legal size for consumption on the premises where served or sold by the holder of a mixed beverage permit, the holder of certain nonprofit entity temporary event permits, the holder of a private club registration permit, or the holder of certain retailer late hours certificates. See Texas Alcoholic Beverage Code 1.04
- Permittee: means a person who is the holder of a permit provided for in this code, or an agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
- Person: means a natural person or association of natural persons, trustee, receiver, partnership, corporation, organization, or the manager, agent, servant, or employee of any of them. See Texas Alcoholic Beverage Code 1.04
- Property: means real and personal property. See Texas Government Code 311.005
(c) A corporation which is barred from renewing a permit because of this section may file an application for an original permit and may be issued an original permit if otherwise qualified.
(d) This section does not apply to a change in corporate control:
(1) brought about by the death of a shareholder if the shareholder’s surviving spouse or descendants are the shareholder’s successors in interest; or
(2) brought about when legal or beneficial ownership of over 50 percent of the stock of the corporation has been transferred:
(A) to a person who possesses the qualifications required of other applicants for permits and is currently an officer of the corporation and has been an officer of the corporation ever since the date the original permit was issued; or
(B) if the permittee notifies the commission, on completed forms and attachments prescribed by the commission, of the proposed transfer prior to the date the transfer is to become effective and the commission does not find that circumstances exist that would be grounds for the denial of a renewal of the permit under § 11.46 and provided the ownership of the corporation immediately after the transfer satisfies the requirements of this code.
(e) Nothing in this section shall be construed to grant any property right to any permit or construed to prevent the commission from suspending or canceling a permit at any time after notice and hearing for a violation of this code.