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Simple English definitions for legal terms
controlling person
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A quick definition of controlling person:
A controlling person is someone who has a lot of power over a company that sells stocks. They can make important decisions that affect the company and its investors. This person has 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 over the company.
A more thorough explanation:
A controlling person is someone who has actual control or significant influence over a company that issues securities, such as stocks or bonds. This control can be exercised by directing corporate policy.
For example, if a person owns a large percentage of a company's stock and is able to make decisions that affect the company's direction, they may be considered a controlling person. However, the percentage of ownership alone does not determine whether someone is a controlling person.
Controlling persons are subject to the same requirements as the issuer of securities when it comes to selling those securities. This means they must follow regulations and laws related to the sale of securities.
Overall, a controlling person is someone who has significant power over a company and its securities, and must follow certain rules and regulations when it comes to selling those securities.