Mr. Smith, Ms. White, Mr. Jones and Mrs. Reyes are all partners in a new bank. Based on the funds that each partner contributed to creating the bank, the following ownership percentages were calculated, respectively: 8%, 31%, 23%, 10%. What is a potential issue with the partner contributions? Mr. Smith must contribute an additional 2% to bring his ownership up to the minimum of 10%.
Ms. White plus Mr. Jones results in over 50% ownership and more than 3 shareholders must make up majority ownership.
Ms. White is out of compliance at 31%.
There is no issue as no one shareholder has majority ownership of the bank.