This bill proposes the addition of a new section, 32-4-402a, to the Code of West Virginia, which empowers the State Auditor, acting as Commissioner under the Uniform Securities Act, to conduct fairness hearings for transactions that involve the exchange of securities for outstanding securities, claims, property interests, or cash. The bill defines key terms such as "reorganization," "recapitalization," and "refinancing," and outlines the process for conducting hearings on proposed plans that involve issuing securities in exchange for other securities or claims. The Commissioner is required to hold a hearing within 30 days of receiving an application and must issue a decision within 10 business days after the hearing.

Additionally, the bill stipulates that securities issued under an approved plan will be exempt from registration requirements, and it mandates that applicants provide notice of the hearing to all relevant parties at least 10 days in advance. The application process includes a filing fee and a deposit to cover hearing costs. The Commissioner is also granted the authority to create rules necessary for implementing this section, including classifying securities and establishing different requirements for various classes. Overall, the bill aims to facilitate fair exchanges of securities while ensuring regulatory oversight.

Statutes affected:
Introduced Version: 32-4-402a