2005 Vermont Code - § 74. — Firms; registration and ownership

§ 74. Firms; registration and ownership

(a) All firms that have an office established or maintained in this state for the practice of public accounting shall be registered biennially with the board. Each office shall be under the supervision of a public accountant licensed in this state. The board shall adopt rules prescribing the procedure to be followed in carrying out the registrations.

(b) An applicant for initial registration or renewal under this section shall be required to show that, notwithstanding any other provision of law, a simple majority of the ownership of the firm, in terms of equity, creditor and voting rights of all partners, officers, members, shareholders or managers, belongs to holders of a certificate who are licensed in some state, and such partners, officers, members, shareholders or managers, whose principal place of business is in this state, and who perform professional services in this state, hold a valid license issued under this chapter. Although firms may include nonlicensee owners, the firm and its ownership must comply with the rules adopted by the board.

(c) Any CPA or RPA firm as defined in this chapter may include nonlicensee owners, provided that:

(1) The firm designates a licensee of this state who is responsible for the proper registration of the firm, and identifies that individual to the board.

(2) All nonlicensee owners are active individual participants in the CPA or RPA firm or affiliated entities.

(3) The firm complies with such other requirements as the board may impose by rule.

(d) Any individual licensee who is responsible for supervising attest or compilation services and signs or authorizes someone to sign the accountant's report on the financial statements on behalf of the firm, shall meet the experience or competency requirements set out in the professional standards for such services.

(e) Any individual licensee who signs or authorizes someone to sign the accountant's report on the financial statements on behalf of the firm, shall meet the experience or competency requirements of subsection (d) of this section. (Added 1975, No. 89, § 13; amended 1981, No. 161 (Adj. Sess.), § 2; 1991, No. 167 (Adj. Sess.), § 10; 1997, No. 59, § 48, eff. June 30, 1997; 1999, No. 133 (Adj. Sess.), § 4; 2001, No. 129 (Adj. Sess.), § 12; eff. June 13, 2002.)