California Financial Code

§ 31038

FIN § 31038Div. 15 · Ch. 1 · Art. 3

Statute text

“Control”, when used with respect to a specified person, means possession, direct or indirect, of the power to do either of the following:

(a)To vote 35 percent or more of any class of the voting securities issued by the specified person.

(b)To direct or cause the direction of the management and policies of such specified person, whether through the ownership of voting securities, by contract (other than a commercial contract for goods or nonmanagement services), or otherwise; provided, however, that no natural person shall be deemed to control a person solely on account of being a director, officer, or employee of such person. For purposes of this subdivision, any person who, directly or indirectly, owns of record or beneficially, holds with power to vote, or holds proxies with discretionary authority to vote, 20 percent or more of any class of the then outstanding voting securities issued by a corporation shall be rebuttably presumed to control such corporation. This presumption is a presumption affecting the burden of proof.

Legislative history

Amended by Stats. 1987, Ch. 867, Sec. 5.