Control of a Small Business by a Licensee.

CFR · 2024-01-01 · US · Title 13

(a) (b) (1) At least 50 percent of the outstanding voting securities, if there are fewer than 50 shareholders; or (2) More than 25 percent of the outstanding voting securities, if there are 50 or more shareholders; or (3) At least 20 percent of the outstanding voting securities, if there are 50 or more shareholders and no other party holds a larger block. (c) (1) The management of the Small Business owns at least a 25 percent interest in the voting securities of the business; and (2) The management of the Small Business can elect at least 40 percent of the board members of a corporation, general partners of a limited partnership, or managers of a limited liability company, as appropriate, and the Investor Group can elect no more than 40 percent. The balance of such officials may be elected through mutual agreement by management and the Investor Group. (d) (e)

official document · source cfr-2024 · id 13:§ 107.865