Section 220-RICR-80-10-1.7 - Control RequirementsA. To prove that the minority, disadvantaged or women owners possess control over the business, an applicant must satisfy all the requirements of §§ 1.7(A)(1) through (3) of this Part below: 1. The Minority, Disadvantaged or Women owners must demonstrate that they have control over: a. The day-to-day management of the business, andb. The policy-making mechanism of the business.(1) The ownership and control by the Minority, Disadvantaged or Women owners must be real, substantial, and continuing and shall go beyond the pro forma ownership of the firm as reflected in its ownership document.(2) The Minority, Disadvantaged or Women owners must establish their control by providing substantial evidence that they possess the power to direct or cause the direction of the management of the firm and to make day-to-day as well as major decisions on matters of management, policy, and operations by establishing the following:c. Have the power to direct or cause the directions of the purchase of goods, equipment, business inventory and services needed in the day-to-day operation of the business.d. Have the authority to hire and fire employees, including those to whom management authority is delegated.e. Be an authorized signature on all corporate accounts-checking, savings, and other financial accounts.f. Have a thorough knowledge of the financial structure of the business and authority to determine all financial affairs.g. Have the capability, knowledge and experience required to make decisions regarding the particular type of work engaged in by the MBE.h. Have displayed independence and initiative in seeking and negotiating contracts, accepting and rejecting bids and in conducting all major aspects of the business.2. Any of the following conditions creates an irrefutable presumption that the owners do not have control of the business that is applying for certification.a. If the Minority, Disadvantaged or Women owners are current employees of a non-minority business corporation, or individual, or partnership which has a significant ownership interest in the business firm applying for certification.b. If the directors and/or management of the applicant firm is substantially the same as the affiliated non-minority firm.c. If the applicant is a wholly-owned subsidiary of a non-minority firm.d. If the applicant has an extremely dependent relationship on a non-minority firm or individual.3. Any agreement, option, right of conversion, scheme or other restraint, which, if exercised, would result in less that dominant control by the minority owners is prohibited.220 R.I. Code R. 220-RICR-80-10-1.7