(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.
Added by Acts 2005, 79th Leg., Ch. 63 (H.B. 1286), Sec. 3, eff. January 1, 2006.