Nebraska Administrative Code
Topic - BOARD OF PUBLIC ACCOUNTANCY
Title 288 - REVISED AND SUBSTITUTED RULES OF THE BOARD
Chapter 11 - FORMS OF PRACTICE AND GENERAL REQUIREMENTS
Section 288-11-004 - Partnerships, Professional Corporations, Limited Liability Companies and other Permissible Forms of Practice; General Requirements; Ownership
Current through March 20, 2024
004.01 If a natural person who is not a certified public accountant in this or some other state or jurisdiction is permitted under Section 1 - 162.01 of the Act to be an owner of a business entity licensed in Nebraska to practice public accounting then:
004.02 Limitations; Equity Ownership. Natural persons who are not certified public accountants in this or any other state or jurisdiction but who are owners of a business entity licensed in Nebraska to practice public accounting, shall not directly or indirectly, including as a beneficiary, (a) hold, in the aggregate, more than forty-nine (49%) of such business entity's equity capital or voting rights, or (b) receive, in the aggregate, more than forty-nine (49%) of such business entity's profits or losses, or (c) exceed in number 49% of the total number of natural persons who are owners of such business entity.
004.03 Limitations; Use of Designation Principal. A person who is an owner and who is licensed in this state or any other state or jurisdiction as a certified public accountant may not hold himself or herself out as a principal.
004.04 Other forms of practice. These rules shall be applied to individuals and to any business entity licensed in Nebraska to practice public accounting in a manner consistent with carrying out the intent of these rules.
004.05 Eligibility; Disqualification; Owners. With respect to owners who are not licensed in this state or any other state or jurisdiction as certified public accountants, if at any time the board determines that any such owner no longer is eligible to be an owner by virtue of not being in compliance with the criteria set forth in Section 1-162.01 of the Public Accountancy Act, such owner and the business entity in which ownership exists shall be notified that if a board hearing is not requested within thirty (30) days of the date of mailing notification of such determination, an order will then be entered that such owner must divest himself, herself or itself of ownership in the business entity within sixty (60) days of entry of the order.
004.06 Professional Corporations; other requirements. The principal executive officer of a professional corporation licensed in Nebraska to practice public accounting shall be an owner and a director who is a licensed certified public accountant. Directors and officers who are not licensees shall not exercise any authority whatsoever over professional matters relating to the practice of public accountancy.
004.07 A non-natural person (hereafter "Parent Company"), other than an employee stock ownership plan, permitted under Section 1-162.01 of the Act to be an owner of a business entity licensed in Nebraska under Section 1 -136 of the Act (hereafter "Nebraska permit holder") shall:
004.08 If an owner of a business entity licensed in Nebraska to practice public accountancy is an employee stock ownership plan ("ESOP"), it shall comply with the following conditions: