Title 4, Economic Resources

Licensees’ Working Papers; Clients’ Records. (a) All statements, records, schedules, working papers, and memoranda made by a licensee or a partner, shareholder, officer, director, member, manager or employee of a licensee, incident to, or in the course of, rendering services to a…

Qualifications for a Certificate as a Certified Public Accountant. (a) The certificate of “certified public accountant” shall be granted to persons of good character who meet the education, experience and examination requirements of the following subsections of this section and w…

Issuance and Renewal of Certificates. (a) The Board shall grant or renew certificates to persons who make application and demonstrate that their qualifications, including where applicable the qualifications prescribed by section 3421, are in accordance with the following subsecti…

Firm Permits to Practice. (a) The Board shall grant or renew permits to practice public accountancy to firms that make application and demonstrate their qualifications therefore in accordance with the following subsections of this section. A firm must hold a permit issued under t…

Reinstatement. (a) In any case where the Board has suspended or revoked a certificate or a permit or registration or refused to renew a certificate, permit, or registration, the Board may, upon application in writing by the person or firm affected and for good cause shown, modify…

Enforcement Procedures: Investigations. (a) The Board may, upon receipt of a complaint or other information suggesting violations of this Act or of the rules of the Board, conduct investigations to determine whether there is probable cause to institute proceedings under sections …

Enforcement Procedures: Hearings By the Board. (a) In any case where probable cause with respect to a violation by a licensee has been determined by the Board, whether following an investigation under section 3431 of this Act, or upon receipt of a written complaint furnishing gro…

Enforcement Against Holders of Certificates, Permits, and Registrations. (a) After notice and hearing pursuant to section 3432 of this Act, the Board may revoke any certificate, permit, or registration issued under sections 3422 or 3423 of this Act, suspend any such certificate, …

Unlawful Acts. (a) No person or firm not holding a valid certificate, permit or registration issued under sections 3422 or 3423 of this Act shall issue a report on financial statements of any other person, firm, organization, or governmental unit. This prohibition does not apply …

Injunctions Against Unlawful Acts. Whenever, as a result of an investigation under section 3431 of this Act or otherwise, the Board believes that any person or firm has engaged, or is about to engage, in any acts or practices which constitute or will constitute a violation of sec…

Criminal Penalties. (a) Whenever, by reason of an investigation under section 3431 of this Act or otherwise, the Board has reason to believe that any person or firm has knowingly engaged in acts or practices that constitute a violation of section 3434 of this Act, the Board may b…

Single Act Evidence of Practice. In any action brought under sections 3432, 3435, or 3436 of this Act, evidence of the commission of a single act prohibited by this Act shall be sufficient to justify a penalty, injunction, restraining order, or conviction, respectively, without e…

Privity of Contract. (a) This section applies to all causes of action of the type specified herein filed on or after the effective date. (b) This section governs any action based on negligence brought against any accountant or firm of accountants practicing in the CNMI by any per…

Uniform Statute of Limitations. (a) This section applies to all causes of action of the type specified herein filed on or after the effective date. (b) This section governs any action based on negligence or breach of contract brought against any accountant, or any accounting firm…

Proportionate Liability. (a) This section applies to all causes of action of the type specified herein filed on or after the effective date. (b) This section governs any claim for money damages brought against any accountant; or any accounting firm registered, licensed, or practi…

Corporate Name. (a) A corporate name: (1) Must contain the word “corporation,” “incorporated,” “company,” or “limited,” or the abbreviation “corp.,” “inc.,” “co.,” or “ltd.,” or words or abbreviations of like import in another language; and (2) May not contain language stating or…

Reserved Name. (a) A person may reserve the exclusive use of a corporate name, including a fictitious name for a foreign corporation whose corporate name is not available, by delivering an application to the Registrar of Corporations for filing. The application must set forth the…

Registered Name. (a) A foreign corporation may register its corporate name, or its corporate name with any addition required by 4 CMC § 4646, if the name is distinguishable upon the records of the Registrar of Corporations from the corporate names that are not available under 4 C…

Form of Contribution. A contribution of a member of a limited liability company may consist of tangible or intangible property or other benefit to the company, including money, promissory notes, services performed, or other agreements to contribute cash or property, or contracts …

Member’s Liability for Contributions. (a) A member’s obligation to contribute money, property, or other benefit to, or to perform services for, a limited liability company is not excused by the member’s death, disability, or other inability to perform personally. If a member does…

Member’s and Manager’s Rights to Payments and Reimbursement. (a) A limited liability company shall reimburse a member or manager for payments made and indemnify a member or manager for liabilities incurred by the member or manager in the ordinary course of the business of the com…

Management of Limited Liability Company. (a) In a member-managed company: (1) Each member has equal rights in the management and conduct of the company’s business; and (2) Except as otherwise provided in subsection (c), any matter relating to the business of the company may be de…

Sharing of and Right to Distributions. (a) Any distributions made by a limited liability company before its dissolution and winding up must be in equal shares. (b) A member has no right to receive, and may not be required to accept, a distribution in kind. (c) If a member becomes…

Limitations on Distributions. (a) A distribution may not be made if: (1) The limited liability company would not be able to pay its debts as they become due in the ordinary course of business; or (2) The company’s total assets would be less than the sum of its total liabilities p…

Liability for Unlawful Distributions. (a) A member of a member-managed company or a member or manager of a manager-managed company who votes for or assents to a distribution made in violation of section 4856, the articles of organization, or the operating agreement is personally …

Member’s Right to Information. (a) A limited liability company shall provide members and their agents and attorneys access to its records, if any, at the company’s principal office or other reasonable locations specified in the operating agreement. The company shall provide forme…

General Standards of Member’s and Manager’s Conduct. (a) The only fiduciary duties a member owes to a member-managed company and its other members are the duty of loyalty and the duty of care imposed by subsections (b) and (c). (b) A member’s duty of loyalty to a member-managed c…

Actions by Members. (a) A member may maintain an action against a limited liability company or another member for legal or equitable relief, with or without an accounting as to the company’s business, to enforce: (1) The member’s rights under the operating agreement; (2) The memb…

Continuation of Term Company After Expiration of Specified Term. (a) If a term company is continued after the expiration of the specified term, the rights and duties of the members and managers remain the same as they were at the expiration of the term except to the extent incons…

Definitions. When used in this chapter: (a) “Commodity in package form” means a commodity put up or packaged in any manner in advance of sale in units suitable for either wholesale or retail sale, exclusive, however, of any auxiliary shipping container enclosing packages that ind…

System of Weights and Measures. The system of weights and measures in customary use in the United States and the metric system of weights and measures are jointly recognized, and one or the other of these systems shall be used for all commercial purposes in the Commonwealth. The …

Definitions of Special Units of Measure. (a) “Barrel,” when used in connection with fermented liquor, means a unit of 31 gallons. (b) “Cord,” when used in connection with wood intended for fuel purposes, means the amount of wood that is contained in a space of 128 cubic feet when…

Standards of Weight and Measure. Such weights and measures in conformity with the standards of the United States as have been supplied to the Commonwealth for use as standards shall, upon being certified as satisfactory for use as such by the National Bureau of Standards, be the …

Field Standards and Equipment. In addition to the standards provided for in 4 CMC § 5414, the Governor shall supply such field standards and equipment as may be found necessary to carry out this chapter. The field standards shall be verified upon their initial receipt and at leas…

Governor: Power and Duties. The Governor shall have custody of the standards of weights and measures and other equipment provided for by this chapter, shall keep accurate records of the same, and shall enforce this chapter. The Governor shall have and keep a general supervision o…

Governor: Specific Powers and Duties; Regulations. (a) The Governor shall issue reasonable regulations for the enforcement of this chapter, which regulations shall have the force and effect of law. (b) These regulations may include: (1) Rules governing the technical and reporting…

General Testing. (a) When not otherwise provided by law, the Governor may inspect and test, to ascertain if they are correct, all weights and measures kept, offered, or exposed for sale. The Governor shall, at least annually, inspect and test, to ascertain if they are correct, al…

Investigations. The Governor shall investigate complaints concerning violations of this chapter, and may, upon the Governor’s own initiative, conduct such investigations as are deemed appropriate and advisable to develop information on prevailing procedures in commercial quantity…

Inspection of Packages. (a) The Governor shall, from time to time, weigh or measure and inspect packages or amounts of commodities kept, offered, or exposed for sale, sold, or in the process of delivery to determine whether the same contain the amount represented and whether they…

Stop-Use, Stop-Removal, and Removal Orders. (a) The Governor may issue stop-use orders, stop-removal orders, and removal orders with respect to weights and measures being commercially used, and issue stop-removal orders and removal orders with respect to packages or amounts of co…

Disposition of Correct and Incorrect Apparatus. The Governor shall approve for use and seal or mark with appropriate devices such weights and measures as the Governor finds upon inspection and test to be “correct” as defined in 4 CMC § 5423, and shall reject and mark or tag as “r…

Right of Entry and Inspection. In performance of official duties, the Governor may enter and go into or upon, at any reasonable time, without formal warrant, any structure or premise, or any other place where commercial transactions are being conducted. Source: DL 5-20, § 13. Com…

Delegation of Power and Duties. The Governor may delegate any of his powers and duties as the Governor deems necessary and proper to carry out this chapter. Source: DL 5-20, § 14. Commission Comment: See the comment to 4 CMC § 5414.

Duties of Owners of Incorrect Apparatus. Weights and measures that have been rejected under authority of the Governor shall remain subject to the control of the rejecting authority until such time as suitable repair or disposition of them has been made as required by this section…

Hindering or Obstructing Officer; Penalties. Any person who hinders or obstructs any person in any way in the performance of his or her official duties under this chapter shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than $2…

Offenses and Penalties. Any person who, personally or by a servant or agent, or as the servant or agent of another person, performs any of the acts enumerated in subsections (a) through (i) of this section shall be guilty of a misdemeanor and, upon a first conviction thereof, sha…