Small business answers — NOW!
  • Home
  • Categories
  • Compliments of Joyce Weiss Training & Development LLC

Controlling interest definition

Question
What is the definition of "controlling interest"? 
Answer
A controlling interest in a company is the ownership of more than 50% of the voting shares (at least 50% plus one share). When controlling interest is at issue, it's necessary to differentiate ownership of voting shares from that of non-voting shares.

There are other control opportunities, for example, when a company requires a super-majority (i.e. 2/3) of shares to pass a certain kind of motion, a party controlling just over 1/3 of the shares could influence the decision. 
Brain Trust contributor: Author of Instant Profits: Making Your Business Pay
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of AskJim.biz
Print this page   Bookmark this page   E-mail this page to a friend   Go back to previous page
AskJim ID: 6321