Kentucky Revised Statutes Title XII. Conservation and State Development § 154.20-283.Prohibition against certain qualified investments and financial interests; investment fund manager's limitations on holding management positions in small businesses in which investment fund has invested

(a) Prior to an investment fund making a qualified investment in the small business, the small business is owned in whole or in an amount greater than twenty percent (20%) of the small business by an investor, officer, director, partner, member, manager, trustee or employee of the investment fund or the investment fund manager; or

(b) The small business employs on a full-time or part-time basis an investor.

(a) Filling a management position in an effort to remedy problems arising from a lack of profitability of the small business, or from dishonesty of the persons otherwise managing the small business; or

(b) Serving in a management position in the small business in order to add value to the investment fund and the business by his or her experience, skills, or relationships to help a business succeed.