As Amended
SEC. 49-20-19. Burden of proof; grounds for approval of acquisitions; time for making decision; notice of decision.
(1) The person or persons filing the statement required by Section 49-20-7 shall have the burden of proof by a preponderance of the evidence. The Secretary of State shall approve an acquisition under this chapter if the Secretary of State finds, on the basis of the record made during any proceeding or on the basis of the filed statement if no proceeding is conducted, that:
(a) Any influence or control which the person or persons filing the statement and their affiliated persons would be able to exercise upon the river timberlands company would not create a reasonable possibility that the river timberlands owned by the river timberlands company or any of its specified subsidiaries in the state may not be operated in the public interest. In considering the public interest for the purposes of this chapter, the Secretary of State shall give consideration to soil, water and timber conservation; the proper, long-term management of timber resources; the long-term employment prospects for the citizens of this state in connection with the timberlands and any related operations; the public policy of the state set forth in Section 49-19-203 and in other provisions of law; and such other factors as shall be identified by the Secretary of State as being pertinent in the public interest;
(b) Any plan or proposal which the acquiring person has, or acquiring persons have made to liquidate the river timberlands company or any specified subsidiary, to sell its assets, or to merge, exchange its shares or consolidate it with any person, or to make any other major change in its business or corporate structure or management is consistent with the public interest;
(c) The competence, experience and ethical integrity of those persons who will control directly or indirectly the operation of the river timberlands company indicate that the acquisition is in the public interest;
(d) The natural persons for whom background information is required to be furnished pursuant to this chapter have such backgrounds as to indicate that it is in the public interest to permit such persons to exercise control or influence over such river timberlands company;
(e) The officers and directors to be employed by the river timberlands company after the acquisition have sufficient timberlands experience and ability to assure a reasonable assurance of operation of the river timberlands company in the public interest;
(f) The management of the river timberlands company after the acquisition will be competent and trustworthy and will possess sufficient managerial experience so as to make the proposed operation of the river timberlands company consistent with the public interest; and
(g) The management of the river timberlands company or persons controlling or influencing or being in a position to influence it after the acquisition will not include any person who has directly or indirectly through ownership, control or other business relations unlawfully manipulated the assets, stocks, accounts, finances, or books of any corporation, association, partnership, trust or other business entity, or otherwise acted in bad faith with respect thereto, or who has violated any law relating to the regulation of forestry or any law otherwise regulating the environment in any respect which appears to be material to an evaluation of the future operation of the river timberlands in question.
(2) If the Secretary of State does not make such findings, he shall disapprove such acquisition. The Secretary of State shall not take action to approve or disapprove any acquisition contemplated by a statement filed under this chapter until forty-five (45) days next following the filing of such statement or any material amendment thereto and, if a proceeding is requested pursuant to Section 49-20-15 or ordered on the Secretary of State's own initiative pursuant to Section 49-20-15, until the conclusion of such proceeding. The Secretary of State shall serve notice of his action in approving or disapproving such acquisition upon the person filing the statement and upon the river timberlands company by mail.
SOURCES: Laws, 1991, ch. 326 Sec. 10, eff from and after passage (approved March 15, 1991).