Section 572.005 - Determination of Substantial Interest An individual has a substantial interest in a business entity if the individual:
(1) has a controlling interest in the business entity;(2) owns more than 10 percent of the voting interest in the business entity;(3) owns more than $25,000 of the fair market value of the business entity;(4) has a direct or indirect participating interest by shares, stock, or otherwise, regardless of whether voting rights are included, in more than 10 percent of the profits, proceeds, or capital gains of the business entity;(5) is a member of the board of directors or other governing board of the business entity;(6) serves as an elected officer of the business entity; or(7) is an employee of the business entity.Tex. Gov't. Code § 572.005
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. 9/1/1993.