controlling interest

Thân thiện

A woman holds a controlling interest in the family business.

Definition

1. Noun:
   • Ownership of a sufficient percentage of a company's voting shares to dictate corporate policy and management decisions: A controlling interest is the ownership stake in a corporation that gives the shareholder or group of shareholders the power to influence and control the company's strategic direction, elect its board of directors, and make major decisions. While often achieved with more than 50% of voting shares, it can sometimes be secured with a lower percentage if the remaining shares are widely dispersed.

Examples of Usage

• Noun:
  • The investor acquired a controlling interest in the tech startup, allowing her to appoint a new CEO.
  • Holding a controlling interest protects the founding family from hostile takeover attempts.
  • The merger will give the larger company a controlling interest in the joint venture.

Advanced Usage

• "to have/hold/own a controlling interest": to possess the dominant shareholding position.
  • The foundation has held a controlling interest in the company since its inception.
• "to acquire/gain/obtain a controlling interest": to purchase or otherwise secure the dominant shareholding position.
  • The rival firm sought to gain a controlling interest through a series of stock purchases.
• "to exercise a controlling interest": to actively use the power that comes with dominant ownership.
  • The new majority shareholder began to exercise its controlling interest by restructuring the management team.

Variants and Related Words

• Controlling shareholder (n): An individual or entity that owns a controlling interest.
  • The controlling shareholder vetoed the proposed expansion.
• Majority interest (n): Often used synonymously with controlling interest when ownership exceeds 50%.
  • They sold their majority interest to an investment fund.
• Minority interest (n): A non-controlling ownership stake in a company.
  • The financial statement includes the earnings attributable to the minority interest.

Synonyms

• Dominant stake: A large, controlling ownership share.
• Majority stake: An ownership share constituting more than half (often used interchangeably, though a can theoretically exist without a strict majority).

Related Phrases

• Controlling share: The specific portion of stock that confers a controlling interest.
  • He sold his controlling share to a competitor.
• Leveraged buyout to gain a controlling interest: A transaction where borrowed money is used to acquire a controlling stake.
  • The management team executed a leveraged buyout to gain a controlling interest.

Notes on Usage

• The term is primarily used in the contexts of business, finance, corporate law, and investment.
• While the classic definition references "more than 50%," in practice, a controlling interest can be established with less than 50% if no other single shareholder has a comparable block of votes, making this a de facto controlling interest.
• It is distinct from a plurality interest, which is the largest single shareholding block but not necessarily enough for full control.

Học thuật

Noun

1. ownership of more than 50% of a corporation's voting shares