Ga. Comp. R. & Regs. R. 20-7-.02 - Firm Ownership
(1) A firm in which a simple majority of the
financial interest and voting rights are owned by CPAs of some state in good
standing may be licensed in accordance with this chapter if all of the
following conditions are met:
(a) Minimum
Required Information: The firm must provide the following information:
1. The name, full business address, and
telephone number;
2. All trade or
business names used by the licensee;
3. The designated holder of a license, or in
the case of a firm which must be licensed pursuant to Code Section
43-3-16(b)(1)(C),
a licensee of another state who meets the requirements for substantial
equivalency practice privileges as provided by Code Section
43-3-18(b),
who shall be responsible for the proper registration of the firm;
4. The name, address and licensure status of
the resident manager;
5. The type
of ownership or operations (i.e., partnership, corporation, or sole
proprietorship); and
6. The name(s)
of the owners, including whether they are a CPA or Non-CPA owner, the states of
licensure, the status of any license previously and currently held, and
including:
(i) If an individual, the name of
the individual;
(ii) If a
partnership, the name of each partner, and the name of the
partnership;
(iii) If a
corporation, the name and title of each corporate officer and director, the
corporate names, the name of the corporation, the name of the parent company,
if any, the names of all members/shareholders of the corporation and parent
company; and
(iv) If a sole
proprietorship, the full name of the sole proprietorship and the name of the
business entity.
(b) The Board will consider the following
factors in determining eligibility for firm licensure:
1. Non-CPA owners of the firm must be natural
persons. "Non-CPA owner" shall refer to the natural persons owning interests in
such general partnerships or limited liability partnerships or other legal
entities.
2. The Non-CPA owners
must participate in the business of the firm consisting of providing services
to or on behalf of the firm or performing functions in the firm or a related
entity of the firm, and the Non-CPA owners cannot be solely or predominately a
passive investor in the firm.
3.
All owners must be of good moral character (for purposes of this Rule,"good
moral character" means fiscal integrity and a lack of any history of acts
involving dishonesty or moral turpitude).
4. Individuals now holding licenses or
certificates from this state or any other state shall not be designated as
Non-CPA owners. Individuals with expired licenses will be counted as a Non-CPA
for purposes of determining the percentage of financial interests and voting
rights in the firm owned by CPAs.
5. Previous disciplinary action against an
owner by this state including the denial of licensure for reasons other than
failure to meet the age, education, examination or experience requirements for
initial licensure, shall be considered as grounds for denial of a
license.
6. Commission of a felony
or crime of moral turpitude under Georgia law, federal law, or the laws of any
other states or any other country of a felony as defined in paragraph (3) of
subsection (a) of Code Section
43-3-21
by the owners.
7. Previous
disciplinary action against the firm or its' owners by any Federal regulatory
authority, the Public Company Accounting Oversight Board, this state or any
other state regulatory authority, or local government authority of any license,
practice privilege, or the right to practice before a state or federal agency
of the firm or its owners.
8.
Compliance with licensing requirements under previously granted licenses if
any.
9. Any other factor or
qualifications the Board considers relevant to and consistent with the public
health and safety.
Notes
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