Wis. Admin. Code Department of Administration Adm 82.32 - Determination of active management
Factors that the department may consider in determining whether one or more disabled veteran owners or their duly authorized representatives actively manage a business include the following:
(1) DIRECT OPERATIONAL MANAGEMENT.
(a) The operational management of the
disabled veteran owner or his or her duly authorized representative is the
demonstrated extent to which the disabled veteran owner or his or her duly
authorized representative actually operates the day-to-day business.
(b) Departmental assessments of operational
management shall rest upon the peculiarities of the industry of which the
business is a part. In order to clarify the level of operational management of
the disabled veteran owner or his or her duly authorized representative, the
department may consider each of the following:
1. `Experience.' The disabled veteran owner
or his or her duly authorized representative has education, demonstrable
working knowledge or experience in the area of specialty or industry claimed in
the application.
2. `Responsibility
for decision-making.'
a. The disabled veteran
owner or his or her duly authorized representative makes basic decisions
pertaining to the daily operation of the business, such as the purchase of
goods, equipment, business inventory and services.
b. The disabled veteran owner or his or her
duly authorized representative supervises the business's employees.
3. `Technical competence.'
a. The disabled veteran owner or his or her
duly authorized representative has technical competence in the industry or
specialty of the business or a working knowledge of the technical requirements
of the business sufficient to critically evaluate the work of
subordinates.
b. The disabled
veteran owner or his or her duly authorized representative has the ability to
perform in his or her area of specialty or expertise without substantial
reliance upon finances and resources - such as equipment, automobiles and
facilities - of entities that are not owned by disabled veterans.
4. `Connection to the principal
place of business.' The disabled veteran owner or his or her duly authorized
representative is not substantially removed from the principal place of
business, such as by being incarcerated.
(2) DELEGATED OPERATIONAL MANAGEMENT. Where
the actual day-to-day operational management is delegated to a person other
than a disabled veteran owner or his or her duly authorized representative, the
active-management requirements may be met if the disabled veteran owner or his
or her duly authorized representative has the ultimate power to hire and fire
that person.
(3) POTENTIAL
CONSTRAINTS ON OPERATIONAL MANAGEMENT. In reviewing governance documents and
issues, the department shall give special attention to the extent to which all
of the following aspects affect the ability of the disabled veteran owner or
his or her duly authorized representative to direct the management and policies
of the business:
(a) The composition of the
business's governing body.
(b) The
functioning of the governing body.
(c) The content of shareholder's agreements,
bylaws, or state incorporation statutes.
Notes
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