Md. Code Regs. 09.24.04.04 - Nonlicensee Owners
A. An individual
not licensed to practice certified public accountancy may have an ownership
interest in a firm in which certified public accountancy is practiced, if the
individual is an active participant in the business of the firm or its
affiliated entities.
B. To
determine whether a nonlicensee owner is an active participant in the business
of the firm or its affiliated entities, the Board shall consider the:
(1) Number of hours the nonlicensee owner
devotes to firm business or the business of its affiliated entities;
and
(2) Type of activities the
nonlicensee owner performs for the firm or its affiliated entities.
C. A nonlicensee owner may be a:
(1) Natural person; or
(2) Business entity, if each ultimate
beneficial owner of equity interest in that entity is a natural person actively
participating in the business of the firm or its affiliated entities.
D. A nonlicensee's ownership
interest shall revert to the firm when the nonlicensee's active participation
in the business of the firm or its affiliated entities ceases.
E. The Board may deny, suspend, or revoke a
permit for a firm in which certified public accountancy is practiced if a
nonlicensee having interest in the firm or its affiliated entities:
(1) Has been convicted under the laws of the
United States or any state of a:
(a) Felony;
or
(b) Misdemeanor containing an
element of fraud or misrepresentation;
(2) Violates any provision of Business
Occupations and Professions Article, Title 2, Annotated Code of Maryland;
or
(3) Violates any provision of
COMAR 09.24.
F. The name
of an owner not licensed to practice certified public accountancy may not be
included in the name of the certified public accountancy firm.
Notes
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