Tuesday, October 30, 2007

154. A Question about the Saipan Casino Act

I hope that the Saipan Casino Act will not get the 2/3rds majority of qualified voters' votes in the upcoming election.

But I have a question about the mechanics of the Act. Call it professional curiousity. I haven't been able to figure out what is supposed to happen in regards to the stock if the proposal becomes law. The proposed law, as written, seems confused and incomplete.

Article III, Section 2 says:

(a) The commission, upon this Act becoming law, shall issue the casino license only to the Northern Marianas Descent Investment Corporation (NMDIC). The license shall be perpertual.

(i) The NMDIC shall be a profit corporation established in accordance with the laws of the Commonwealth of the Northern Mariana Islands.
(ii) The incorporators, directors, officers and shareholders of the NMDIC shall be persons of NMD.
(iii) NMDIC shall issue shares of common stock duly subscribed in Five Hundred Dollar (US $500.00) par value per share and preferred stocks duly subscribed in one dollar ($1.00) par value per share to natural NMD persons only.
(iv) No natural person of NMD shall own more than one (1) share of common stocks and twenty-five thousand (25,000) of preferred shares.
(v) Any natural person of NMD, who is eighteen (18) years of age or older may subscribe to only one share of common stock and not more than twenty-five thousand (25,000) preferred shares of NMDIC, and pay for such share in an installment amount to be determined under a share subscription agreement with NMDIC. Each common stock shareholder shall be entitled to one vote during shareholders meeting or other events and business of NMDIC. However, for the purpose of computing, declaring and paying dividends per share to be paid, it shall be based only on fully subscribed and paid share.
(vi) Authorized Stocks. NMDIC shall authorize number of capital stocks to meet the current and growing NMD population in the Commonwealth pursuant to this Subsection.

So my first and basic question is what happens to a person's stock when he or she dies? Can it only be inherited by someone who is also NMD? What if all heirs already have their own one share? Or there is no NMD heir? Is it bought back and the money paid for it inherited? Does the share disappear?

The whole thing about the number of stocks also seems financially troublesome. Is there a fixed number of shares, open for purchase, or is it that all NMDs have a right to purchase one share of common stock?

It seems as if any and all NMDs have a right to buy into the NMDIC. It seems as if the number of shares will constantly fluctuate and increase with population. But if that's the case, then as NMDs reach age 18, they can automatically purchase a share of common stock, constantly diluting the shares of those who already have one.

Or will it be that as fewer and fewer people meet the 25% NMD blood requirement that there will be fewer and fewer who are eligible to own the stocks?

On a different note, and issue: the people who control the NMDIC can let friends and family have a share without paying, to give those friends and family a vote at (important) meetings. Do they have to let all NMDs have the same access to an unpaid share? Isn't it interesting that people can vote without paying for their share?

Anyone with ideas, feel free to clue me in.


lil_hammerhead said...

I'll bet you that you don't get a detailed answer from anyone involved with the NMDIC before election day.

Robin S. said...

Hi from Robin (from EE's blog).

Hope all is well where you are.