§ 89-h. Transfer of franchises or stocks. 1. No water-works
corporation shall transfer or lease its franchise, works or system or
any part of such franchise, works or system to any other person or
corporation or contract for the operation of its works and system,
without the written consent of the commission.

2. The permission and approval of the commission to the assignment,
transfer or lease of a franchise under this section shall not be
construed to revive or validate any lapsed or invalid franchise or to
enlarge or add to the powers and privileges contained in the grant of
any franchise or to waive any forfeiture.

3. No water-works corporation shall directly or indirectly acquire the
stock or bonds of any other corporation incorporated for, or engaged in,
the same or a similar business, or proposing to operate or operating
under a franchise from the same or any other municipality, unless
authorized so to do by the commission.

4. Save where stock shall be transferred or held for the purpose of
collateral security only with the consent of the commission empowered by
this chapter to give such consent, no stock corporation of any
description, domestic or foreign, company, including, but not limited
to, a limited liability company, association, including a joint stock
association, partnership, including a limited liability partnership, or
person, other than a water-works corporation, shall purchase or acquire,
take or hold, more than ten per centum of the voting capital stock
issued by any water-works corporation organized or existing under or by
virtue of the laws of this state, except that a corporation now lawfully
holding a majority of the voting capital stock of any water-works
corporation may with the consent of the commission acquire and hold the
remainder of the voting capital stock of such water-works corporation or
any portion thereof. Provided, that with the consent of such commission
and upon and subject to such terms and conditions as such commission may
fix and impose, any such stock corporation, company, association,
partnership or person may acquire, take and hold more than ten per
centum of the voting capital stock of any water-works corporation,
organized or existing under or by virtue of the laws of this state.

5. No consent shall be given by the commission to the acquisition of
any stock in accordance with this section unless it shall have been
shown that such acquisition is in the public interest. Nothing contained
in this section shall be construed to prevent the holding of any stock
heretofore lawfully acquired, nor to prevent, upon the surrender or
exchange of such stock pursuant to a reorganization plan, the purchase,
acquisition, taking or holding of a proportionate amount of stock of any
new corporation organized to take over, at foreclosure or other sale,
the property of any corporation whose stock has been thus surrendered or
exchanged; but the proportion of the voting capital stock of the new
corporation held by a stock corporation, company, association,
partnership or person and acquired by it by any such surrender or
exchange of stock shall not without the consent of the commission exceed
the proportion of the voting capital stock held by it in the former
corporation.

6. Every contract, assignment, transfer or agreement for transfer of
any stock by or through any person or corporation to any corporation,
company, association, partnership or person, in violation of any
provision of this chapter shall be void and of no effect, and no such
transfer or assignment shall be made upon the books of any such
water-works corporation, or shall be recognized as effective for any
purpose.