Wis. Admin. Code Department of Administration § Adm 84.05 - Determination of ownership

An applicant shall meet the following standards in order to satisfy the ownership requirement:

(1) Minority persons must legitimately hold at least 51% of the beneficial ownership interests in the business.

(2) The minority ownership's interest in the firm shall be real, substantial and continuing. Such interest shall include:

(a) A risk of loss and share of profit commensurate with the proportional ownership; and,

(b) Receipt of the customary incidents of ownership, such as salary, rights to dividends, ownership of assets and ownership of intangible assets such as copyrights and patents.

(3) The contributions of capital and expertise by the minority owner or owners to acquire his or her interest in the firm shall be real and substantial. Contributions of personal or professional services alone shall not be considered real and substantial for the purposes of this section, although they shall receive consideration when given in conjunction with other tangible forms of investment.

(4) All securities and ownership interests which constitute ownership or control of the firm for the purposes of establishing it as a minority business enterprise shall be held directly by the minority owner or owners. No securities or ownership interest held in trust, or by any guardian for a minor, shall be considered as being held by the minority owner or owners in determining ownership and control of the business. The right to purchase stock in the business in the future shall not be considered as being held by the minority owner or owners in determining ownership and control of the business.

(5) An ownership interest arising in a nonapplicant nonminority spouse solely because of the operation of marital property laws shall not disqualify the applicant minority spouse from certification if both spouses certify that only the minority spouse participates in the control and management of the business.

Notes

Wis. Admin. Code Department of Administration § Adm 84.05

Cr. Register, September, 1987, No. 381, eff. 10-1-87.