Controlling interest

Accountancy
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Controlling interest in a corporation means to have control of a large enough block of voting stock shares in a company such that no one stock holder or coalition of stock holders can successfully oppose a motion. In theory this normally means that controlling interest would be 50% of the voting shares plus one.

In practice, though, controlling interest can be far less than that, as it is rare that 100% of a company's voting shareholders actively vote.

In addition, a company that requires a 2/3 super-majority of shares to vote in favor of a motion can grant, in effect, veto power to a minority shareholder or block of shareholders that own essentially 1/3 of the shares. Thus in some cases, a single entity can essentially maintain control, with only 33.4% of the outstanding shares. Ford Motor Company's former 33.9% ownership of Mazda North American Operations is an example of a controlling interest with minority shareholding that was granted by Mazda.

See also

• Consolidation (business)
• Minority interest
• Holding company
• Parent company
• Subsidiary

This accountancy-related article is a stub. You can help Wikipedia by expanding it.v · Categories: Financial accounting Accounting stubs Wikimedia Foundation. 2010. Игры ⚽ Нужно сделать НИР? HMS Leviathan Bangkok Hilton 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 — 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 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,… …   Investment dictionary 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”