South Dakota Codified Laws 51A-17-2.2. Passive investor defined
For purposes of this chapter, the term, passive investor, means a person that:
(1) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or controlling person;
Terms Used In South Dakota Codified Laws 51A-17-2.2
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
- written: include typewriting and typewritten, printing and printed, except in the case of signatures, and where the words are used by way of contrast to typewriting and printing. See South Dakota Codified Laws 2-14-2
(2) Is not employed by and does not have any managerial duties of the licensee or controlling person;
(3) Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or controlling person; and
(4) Either:
(a) Attests to subdivisions (1), (2), and (3), in a form and in a medium prescribed by the director; or
(b) Commits to the passivity characteristics of subdivisions (1), (2), and (3) in a written document.
Source: SL 2022, ch 178, § 3.