Business & LicensingQuestion 399 of 1605
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 §7068Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)