This bill amends the North Dakota Century Code to allow for minority ownership of accounting firms by individuals or qualified plans, such as employee stock ownership plans. Specifically, it modifies existing provisions in sections 10-31-04 and 43-02.2-06 to clarify that a professional organization can have minority owners and that ownership can include qualified plans as defined by the Internal Revenue Code. The amendments ensure that a simple majority of the ownership and voting rights must still belong to licensed accountants, while also allowing for the inclusion of minority ownership by qualified plans.

Additionally, the bill introduces a new section that permits a firm to be wholly owned by a qualified plan, provided that certain conditions are met. These conditions include that at least 51% of the beneficial ownership of the plan must belong to certified public accountants or licensed public accountants, and that all accountants associated with the firm hold valid licenses issued by the state. Furthermore, a simple majority of the firm's board of directors must also consist of licensed accountants. This legislative change aims to enhance the ownership structure of accounting firms while maintaining professional standards and compliance with state regulations.

Statutes affected:
INTRODUCED: 10-31-04, 43-02.2-06
Enrollment: 10-31-04, 43-02.2-06