New York Private Investigator Regulations Practice Exam

A corporation's PI license can be revoked if what percentage of the corporate stock is held by a person who fails to meet the character standard?

1. 5%

2. 10%

3. 15%

4. 20%

The correct answer is: 10%

A corporation's private investigator license can be revoked if 10% or more of the corporate stock is held by an individual who does not meet the required character standards. This standard exists to ensure that those who have a meaningful stake in the company uphold the integrity and professionalism expected in the private investigation field. The rationale is that individuals with significant ownership (10% or more) could influence the company's operations and decision-making processes. If such individuals do not meet the statutory requirements, this raises concerns about the potential for unethical or illegal conduct within the corporation, making it imperative for regulatory bodies to enforce license revocation in such scenarios.