Firm ownership.

3-01-03-02. Firm ownership. A minority of the ownership of a firm practicing public accountancy within this state may be held by noncertified public accountants or nonlicensed public accountants, but each such owner: 1. Must be: a. An individual; or b. A qualified plan as described and defined in sections 401(a) and 4975(e)(7) of the Internal Revenue Code [26 U.S.C. 401(a) and 4975(e)(7)], including an employee stock ownership plan. 2. Must not serve as the principal executive officer of the firm; 3. Must not exercise authority over the performance of audit, review, compilation, or other attest services; and 4. Must not aid in the unauthorized practice of public accounting, or knowingly misrepresent facts, or commit any act discreditable to the accounting profession. If any owner of a firm practicing public accounting within this state is convicted of a felony or other crime involving fraud or dishonesty, or is disciplined by a regulatory agency, that person's ownership in the firm must be fully divested within six months thereafter, if so directed by the board. In the event of death or incapacity of a firm's sole owner, the firm may continue to operate under the owner's name and credential, for up to one year. The board may require firm supervision. History: Effective July 1, 2008; amended effective April 1, 2018; April 1, 2024; January 1, 2026. General Authority: NDCC 43-02.2-03 Law Implemented: NDCC 43-02.2-06, 43-02.2-06.1