NRS463.5733. Prior approval by Commission required for other disposition of interest in limited-liability company; restrictions on unsuitable persons; statement on certificate.

      1.  The purported sale, assignment, transfer, pledge, exercise of an option to purchase, or other disposition of any interest in a limited-liability company which holds a state gaming license or which is a holding company or an intermediary company for an entity that holds a state gaming license is void unless approved in advance by the Commission.

      2.  If at any time the Commission finds that a member is unsuitable to hold an interest in a limited-liability company, the Commission shall immediately notify the limited-liability company of that fact. The limited-liability company shall, within 10 days after it receives the notice from the Commission, return to the member, in cash, the amount of the member’s capital account as reflected on the books of the company.

      3.  Except as otherwise provided in subsection 2, beginning on the date when the Commission serves notice of a determination of unsuitability pursuant to subsection 2 upon the limited-liability company, it is unlawful for the unsuitable member:

      (a) To receive any share of the distribution of profits of the limited-liability company or any payments upon dissolution of the company;

      (b) To exercise any voting right conferred by the member’s interest in the limited-liability company;

      (c) To participate in the management of the limited-liability company; or

      (d) To receive any remuneration in any form from the limited-liability company, for services rendered or otherwise.

      4.  The articles of organization of any limited-liability company holding a state gaming license must contain a statement of the restrictions imposed by this section.

      (Added to NRS by 1993, 1994; A 1997, 3504; 2003, 20th Special Session, 14; 2007, 1116)