Title 5 - Business Licenses and Regulations

5.52.040 Transfer of Ownership.

It is unlawful for any shareholder of a corporate licensee to transfer any stock in the corporation to any person who would be ineligible to receive a license as an individual, and any such transfer shall be null and void; provided, that if any such stockholder of a corporate licensee shall become deceased, and his heirs or devisees to whom such stock descends by descent and distribution or by will shall be ineligible to receive a license under this chapter, then the legal representatives of the deceased stockholder's estate, his heirs and devisees shall have fourteen months from the date of the death of the stockholder within which to sell such stock to a person eligible to receive a license under this chapter, with such sale to be made in accordance with the provisions of the probate code and any amendments thereto. If the legal representative, heirs, and devisees fail, refuse or neglect to so convey the stock within the time herein before prescribed, then the stock shall revert to and become the property of the corporation, for which the corporation shall pay the legal representatives, heirs or devisees the book value of such stock. If the stock in any corporation shall be the subject of any trust heretofore or hereafter created, the trustee or trustees and the beneficiaries of each trustee and beneficiary of said trust who is twenty-one years of age or older must be a person who would be eligible to receive a license or the trustee shall be and he is authorized and required within fourteen months after the effective date of the trust to sell the stock to a person eligible to receive a license under this chapter and he shall hold and disburse the proceeds thereof in accordance with the terms of the trust or the license of the corporation shall be forfeited.

During the fourteen month periods herein before mentioned a corporation shall not be denied a license or have its license revoked if it meets all of the other requirements necessary to have a license as provided in this chapter.

(History: Ord. PB-712 §4, 72)

Effective on: 1/1/1901