If you are the qualifying member of a construction business, you and your licenses will be held accountable for all activity and any violations committed by other members of the license. As the Responsible Managing Officer (RMO), Responsible Managing Employee (RME), or Qualifying Partner for a contracting business, you must exercise direct supervision and control of its contracting operations. If you are not doing so, or if any of the business’s other officers, general partners, or employees break the law, you could lose this license and any other license on which you serve as qualifier for violating section 7068.1 of the Business and Professions Code (B&P).
Also, keep in mind that under B&P Code section 7122.5 any act or omission that is a cause for disciplinary action by any individual, partnership, corporation or firm is also a cause for disciplinary action against the RMO, RME, or Qualifying Partner, regardless of his or her knowledge and participation.
Always consult an attorney before allowing anyone to have you listed as an RMO or RME of a business.