Definition of Controlling Person

Sec. 1806.003. DEFINITION OF CONTROLLING PERSON. (a) In this section, "business entity" means a corporation, business trust, estate, trust, partnership, including a limited partnership, association, or any other legal entity, regardless of whether the entity is incorporated in this state. (b) In this chapter, "controlling person" means an individual who: (1) has direct or indirect control of at least 25 percent of the voting securities of a business entity; (2) has the authority to set policy and direct the management of a business entity; (3) is the president, the secretary, or a director of a business entity; or (4) is a general partner of a partnership, including a limited partnership. Added by Acts 2025, 89th Leg., R.S., Ch. 1062 (S.B. 1036), Sec. 1, eff. September 1, 2025.