A New York applicant entity in 2026 has a 12% stockholder with a disqualifying felony. Does the 12% owner meet the substantial-stockholder threshold for the refusal provision?
Correct Answer
C) A substantial stockholder: the threshold is 10 percent
Substantial stockholder means a person owning or controlling directly or indirectly ten per centum or more of the total outstanding stock of a corporation, and the refusal provision names substantial stockholders alongside directors, officers, partners, agents, employees and consultants. Other choices: stockholders are named; the figure is 10 percent; and holding office is not required. Source: N.Y. Banking Law § 592-a(2)
Why This Is the Correct Answer
Substantial stockholder means a person owning or controlling directly or indirectly ten per centum or more of the total outstanding stock of a corporation, and the refusal provision names substantial stockholders alongside directors, officers, partners, agents, employees and consultants. Other choices: stockholders are named; the figure is 10 percent; and holding office is not required. Source: N.Y. Banking Law § 592-a(2)
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