Business & LicensingQuestion 399 of 1632
A Responsible Managing Officer (RMO) of a corporation that holds a contractor license must own at least what percentage of the company's voting stock to be exempt from filing the bond of qualifying individual?
a.20 percent or more
b.Exactly 25 percent
c.A majority (over 50 percent)
d.10 percent or more
Explanation
Under §7068, an RMO who owns 10 percent or more of the voting stock is generally not required to file a separate bond of qualifying individual. An RMO owning less than 10 percent must file that bond.
Law Reference: Bus. & Prof. Code §7068This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)