Idaho State Statutes - Idaho Attorney Directory

(1)
Either by itself or in concert with a director, officer, principal
shareholder, or affiliate; another licensee; or a director, officer, principal
shareholder, or affiliate of another licensee, a licensee shall not hold
control of a business firm, except as follows:
(a) If and to the extent necessary to protect the licensee's interest as
creditor of, or investor in, the business firm, a licensee that had
provided financing assistance to a business firm may acquire and hold
control of that business firm. Unless the director approves a longer
period, a licensee holding control of a business firm under this
subdivision shall divest itself of the interest which constitutes holding
control as soon as practicable or within three (3) years after acquiring
that interest, whichever is sooner.
(b) With the approval of the director, a licensee may acquire and hold
control of a corporation which is licensed as a small business investment
company under the small business investment act of 1958, Public Law
85-699, 72 Stat. 689 or any successor statute.
(c) With the approval of the director, a licensee may acquire and hold
control of a company which is a local development company in accordance
with the small business investment act of 1958, whether or not such a
development company is or may become certified by the small business
administration under section 503 of the small business investment act of
1958, 15 U.S.C. section 697 or any successor statute.
(d) With the approval of the director, a licensee may acquire and hold
control of another business firm which is engaged in no business other
than the business of providing financing assistance and management
assistance to business firms.
(e) With the approval of the director, a licensee may acquire and hold
control of a business firm not referred to in paragraphs (a) through (d)
of this subsection. The director shall not approve an application under
this subdivision unless the director determines that such an approval will
not cause the amount of the licensee's investments in business firms
covered by this subdivision to exceed fifteen percent (15%) of the amount
of the assets of the licensee and that in the director's judgment such an
approval will promote the purposes of this chapter. An approval by the
director under this subdivision shall be for a period of not more than
three (3) years, except that in a particular case the director may
subsequently extend the period beyond three (3) years if the director
determines that a longer period is needed and is consistent with the
purposes of this chapter.
(2) If the director fails to issue an order approving or denying an
application under subsection (1)(b) or (c) of this section, within forty-five
(45) days from receipt by the director of an application which complies with
section 26-2704, Idaho Code, the application shall be considered approved by
the director.
(3) For the purposes of subsection (1) of this section, "hold control"
means ownership, directly or indirectly, of record or beneficially, of voting
securities greater than:
(a) For a business firm with outstanding voting securities held by fewer
than fifty (50) shareholders, forty percent (40%) of the outstanding
voting securities.
(b) For a business firm with outstanding voting securities held by fifty
(50) or more shareholders, twenty-five percent (25%) of the outstanding
voting securities.
(4) If a licensee anticipates acquiring and holding control of a business
firm under subsection (1)(a) of this section, the licensee shall file with the
director a plan for acquiring and holding control of the business firm that
shall include at least all of the following:
(a) The reasons it is necessary for the licensee to acquire and hold
control of the business firm.
(b) The percentage of outstanding voting securities of the business firm
the licensee plans to own.
(c) The licensee's proposed course of action upon obtaining control of
the business firm.
(d) The length of time the licensee anticipates it will be necessary to
hold control of the business firm.
(5) The director may require the licensee to demonstrate the necessity
for the licensee to hold control of a business firm under subsection (1)(a) of
this section.

Click here to visit the Official Idaho State Statutes