HB2889: To permit a fairness hearing exemption to the registration requirements of the Uniform Securities Act.

Legislative Summary

The purpose of this bill is to authorize the Commissioner of the State Auditor of West Virginia, or his or her designee, to conduct fairness hearings for transactions involving the exchange of a security for one or more outstanding securities, claims or property interests or partly for cash, to determine whether the terms and conditions of the exchange are fair to the security holders participating in the exchange, which would allow the parties in the exchange to seek to qualify the exchange as exempt from registration under Section 3(a)(1) of the Securities Act, 15 U.S.C. §77c(a)(10) .