Texas Occupations Code 1304.0035 – Controlling Person
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(a) In this chapter, “controlling person” means an individual who:
(1) possesses direct or indirect control of at least 25 percent of the voting securities of a corporation;
(2) possesses the authority to set policy and direct the management of a business entity;
(3) is the president, the secretary, or a director of a corporation; or
(4) is a general partner of a partnership.
(b) An individual who is a controlling person of a corporation or other business entity that is the general partner of a limited partnership is a controlling person of the limited partnership.
Terms Used In Texas Occupations Code 1304.0035
- 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.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005