90-5-303. Definitions. As used in this part, the following definitions apply:
     (1) "Employee ownership group" means a group that may include a corporation, labor organization, or other groups of persons voluntarily affiliated for the purpose of actively engaging in an effort to establish an employee-owned enterprise.
     (2) "Employee-owned enterprise" means a business corporation that:
     (a) requires that at least a majority of its employees:
     (i) are vested with stock in the enterprise and all of whose vested employees are entitled to vote; and
     (ii) own a majority of the shares which must be voted so that the vote of a majority of the employees control the vote of a majority of shares;
     (b) requires that voting rights on corporate matters for shares held in trust for the employees pass through to those employees at least to the extent required by the voting requirements of section 409(e) of the Internal Revenue Code of 1986, as amended;
     (c) provides vested employees the right to vote on corporate matters, including merger, consolidation, recapitalization, reclassification, liquidation, dissolution, or sale; and
     (d) requires that at least a majority of the members of the board of directors is elected by the employees of the enterprise.

     History: En. Sec. 3, Ch. 671, L. 1989.