(a) To be eligible for a firm license, the firm must show:
- (1) that a majority of the ownership of the firm, in terms of both financial interests and voting rights, belongs to persons who hold certificates issued under this chapter or are licensed as a CPA in another state; and
- (2) that all attest services performed in this state are under the supervision of a person who holds a certificate issued by the board or by another state.
- (b) Financial interests shall include but shall not be limited to stock shares, capital accounts, capital contributions, and equity interests of any kind. Financial interests also include contractual rights and obligations similar to those of partners, shareholders or other owners of an equity interest in a legal entity.
- (c) Voting rights shall include but shall not be limited to any right to vote on the firm's ownership, business, partners, shareholders, management, profits, losses and/or equity ownership.
Source Note:The provisions of this §513.10 adopted to be effective August 4, 2004, 29 TexReg 7307.