Which statement defines a control person?

• A. Over 10% of voting stock
• B. Any officer of the company
• C. A person with 5% ownership
• D. A non-employee consultant

Answer: (A)

A control person is someone who has the power to direct the management and policies of the issuer, typically through ownership of a controlling block of voting shares. The standard threshold used is more than 10% of the issuer’s voting stock, which signals significant influence over decisions. That’s why this option is the best answer.

Being an officer isn’t automatically the same as owning more than 10% of the voting stock, and 5% ownership is not enough to confer the level of influence implied by “control.” A non-employee consultant has no ownership and generally no control over governance.