- Controlling Interest
- When one shareholder or a group acting in kind holds a high enough percentage of ownership in a company to enact changes at the highest level. By definition, this figure is 50% of the outstanding shares or voting shares, plus one. However, controlling interest can be achieved with less than 50% ownership of the stock if that person/group owns a significant proportion of the voting shares, because in many cases, not every share carries a vote in shareholder meetings.
For the majority of large public companies (such as those that belong to the S&P 500), a shareholder with much less than 50% of the outstanding shares can still cause a lot of shake-up at the company. Single shareholders with as little as 5-10% ownership can push for their own seats on the board, or enact changes at shareholder meetings by publicly lobbying for them.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
controlling interest — ➔ interest * * * controlling interest UK US noun [C, usually singular] FINANCE, STOCK MARKET ► if someone has a controlling interest in a company, they own enough shares in it to control its management: have/own/hold a controlling interest (in… … Financial and business terms
controlling interest — see interest 1 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
Controlling interest — (engl.), in Nordamerika eine Art der Verschmelzung verschiedener Eisenbahnunternehmungen, die darin besteht, daß die eine Gesellschaft so viele Aktien der andern erwirbt, daß sie nun die Mehrheit in der Generalversammlung besitzt. Mittels der C.… … Meyers Großes Konversations-Lexikon
Controlling Interest — Controlling Interest, eine in den Vereinigten Staaten eigentümliche Art der Vereinigung von Eisenbahngesellschaften unter gemeinsamer Verwaltung. Die eine Gesellschaft erwirbt so viele stimmberechtigte Aktien der Gesellschaft, mit der sie… … Enzyklopädie des Eisenbahnwesens
Controlling interest — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
controlling interest — con.trolling interest n [C usually singular] if you have a controlling interest in a company, you own enough ↑shares to be able to make decisions about what happens to the company controlling interest in ▪ The firm paid over $10 million for a… … Dictionary of contemporary English
controlling interest — An interest in a company that gives a person or another company control of it. To have a controlling interest in a company, a shareholder would normally need to own or control more than half the voting shares. However, in practice, a shareholder… … Accounting dictionary
controlling interest — An interest in a company that gives a person or another company control of it. To have a controlling interest in a company, a shareholder would normally need to own or control more than half the voting shares. However, in practice, a shareholder… … Big dictionary of business and management
controlling interest — UK [kənˌtrəʊlɪŋ ˈɪntrəst] / US [kənˌtroʊlɪŋ ˈɪntrəst] noun [countable, usually singular] Word forms controlling interest : singular controlling interest plural controlling interests business a situation in which someone owns enough shares in a… … English dictionary
controlling interest — noun ownership of more than 50% of a corporation s voting shares • Hypernyms: ↑interest, ↑stake * * * conˌtrolling ˈinterest [controlling interest] noun usually singular the fact of owning enough shares in a company to be able t … Useful english dictionary