A San Antonio liquor business’s new owners’ legal battle to transfer its shares to a public corporation went before a federal appeals court Thursday.
Gabriel Investment Group sought a ruling from a three-judge panel of the 5th U.S. Circuit of Appeals in New Orleans that would allow the company to sell its stock to a public corporation. The Texas Alcoholic Beverage Commission opposed the request.
The state Legislature in 1995 imposed restrictions on permits for package stores, which sell hard liquor. As a result, “public corporations” may not hold or own a permit in the state. A public corporation is defined as any company that trades on a public stock exchange or has more than 35 owners.
Gabriel Investment Group, or GIG, is considered a public corporation because it’s had more than 35 owners. The company received an exemption to the public ban before it took effect in 1995, however.