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Mesa Arizona Form 5471: What You Should Know

PRICES AND OTHER FINANCIAL MATTERS CHAPTER 15 EXEMPTING EMPLOYEES FROM THE COMMON PENAL PROVISIONS § 15-15-40. Exemptions from the provisions of this chapter (A) No employee may work in this city after the commencement of his or her employment if, during any of the hours employed in his or her employment, the employee has: (1) A substantial interest in any such stock of a foreign corporation. (2) Any other interest in any such stock of a foreign corporation. (B) A foreign corporation shall be deemed to have a substantial interest in a person within the meaning of this article if the person has been or is related at the time of such person's employment: (1) to the foreign corporation. (2) to other persons residing in this city who have an aggregate interest in the stock of the foreign corporation in excess of fifty-five percent (55%) of the value of the aggregate value of such stock. A foreign corporation shall be deemed to have an interest in a person within the meaning of this article if the person is a shareholder of a holding company which either: A.(1) holds securities of a foreign corporation owned by or through the employee; B.(2) owned or controls the stock of a foreign corporation when held by a U.S. person; or C.(3) owns or controls the equity interests in a foreign corporation owned by the spouse, parent or child of the employee. (C)(1) A person may not perform services with a foreign corporation which has: (a) stock which exceeds five percent (5%) of the value of the capital stock of the corporation, unless the foreign corporation and the person are related at that time of employment to the employee; or (b) interest in a foreign corporation which, directly or indirectly, is directly or indirectly owned, controlled, or managed, or is under common ownership with, by virtue of the employee's employment or service, by a foreign corporation, unless the foreign corporation and the person are related at that time of employment to the person. This subsection may not be construed to permit an officer or member of any firm, company, trade or business, or any of the officers, agents or employees thereof or persons working in close personal proximity to any such officer or member, to own stock, unless such stock is owned by or through that person.

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