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Simple English definitions for legal terms
control person
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A quick definition of control person:
A control person is someone who has a lot of power over a company that sells stocks. They can make important decisions that affect the company. They have to follow rules when they sell stocks, just like the company does. It doesn't matter how much of the company's stock they own, what matters is how much control they have.
A more thorough explanation:
A control person is someone who has actual control or significant influence over a company that issues securities. This means they have the power to direct corporate policy and make important decisions that affect the company.
For example, a CEO or a member of the board of directors could be considered a control person because they have significant influence over the company's operations and policies.
It's important to note that being a control person is not dependent on owning a specific percentage of the company's stock. Even someone who owns a small percentage of the company's stock could be considered a control person if they have significant influence over the company.
Control persons are subject to many of the same requirements as the company when it comes to selling securities. This is because they have the power to affect the value of the securities through their actions and decisions.