Illinois Administrative Code
Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT
Part 40 - SERVICE-DISABLED AND VETERAN-OWNED SMALL BUSINESSES
Subpart F - CERTIFICATION REQUIREMENTS AND PROCEDURES
Section 40.580 - Control
Universal Citation: 44 IL Admin Code ยง 40.580
Current through Register Vol. 48, No. 38, September 20, 2024
a) Ownership by eligible group members does not equate to control.
b) The individuals claiming ownership and control of the applicant business must actually control the applicant business. Those individuals must be in direct control of the day to day operations and must have, and exercise, the power to make major decisions on management, policy, fiscal and operational matters. At a minimum, the following factors will be considered in determining control:
1)
Do the articles of incorporation show the eligible group owners were involved
at the time of incorporation and in what way? If the eligible group owners were
not involved at the time of incorporation, when did they become
involved?
2) Corporate by-laws will
be reviewed to determine:
A) The duties of the
directors and officers who occupy these positions;
B) The voting rights of the shareholders;
and
C) Any restrictive language
that may affect the eligible group owner's stock voting rights.
3) Are there any stock
options/shareholders agreements that, if exercised, will dilute or eliminate
eligible group owner control?
4) Do
the eligible group owners make decisions independently?
5) Does a review of resumes show the eligible
group owners have sufficient background, including education and training, to
run the particular business and for the responsibilities assigned?
6) Do the eligible group owners continue to
work for a firm not eligible to be certified SDVOSBs or VOSBs and, if so, what
is the relationship of the firm to the applicant business?
7) Who in the firm negotiates contracts and
loans, prepares estimates and makes other management and supervisory
decisions?
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