Nevada Revised Statutes 78.418 – ‘Control,’ ‘controlling,’ ‘controlled by’ and ‘under common control with’ defined; presumption of control
1. Except as otherwise provided in subsection 2:
Terms Used In Nevada Revised Statutes 78.418
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Trustee: A person or institution holding and administering property in trust.
- Voting shares: means shares of stock of a corporation entitled to vote generally in the election of directors. See Nevada Revised Statutes 78.010
(a) ’Control,’ used alone or in the terms ‘controlling,’ ‘controlled by’ and ‘under common control with,’ means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.
(b) A person’s beneficial ownership of 10 percent or more of the voting power of a corporation‘s outstanding voting shares creates a presumption that the person has control of the corporation:
(1) In the absence of proof by a preponderance of the evidence to the contrary; or
(2) Unless any other stockholder of the corporation, other than an affiliate or associate of the person, is the beneficial owner of an equal or greater percentage of the voting power of the corporation’s outstanding voting shares.
2. A person is not considered to have control of a corporation if the person holds voting power, in good faith and not for the purpose of circumventing the provisions of this chapter, as an agent, bank, broker, nominee, custodian or trustee for one or more beneficial owners who do not individually or as a group have control of the corporation.