Controlling interest

  (Redirected from Majority interest)

A controlling interest is an ownership interest in a corporation with enough voting stock shares to prevail in any stockholders' motion. A majority of voting shares (over 50%) is always a controlling interest. When a party holds less than the majority of the voting shares, other present circumstances can be considered to determine whether that party is still considered to hold a controlling ownership interest.[1]

In the United States, Delaware corporations have a 2/3 vote requirement for a motion to pass.[citation needed] In theory, this could mean that a controlling interest would have to be over two thirds of the voting shares.

A 2019 study published in the Virginia Law Review said dual-class stock structures, common to newly-public technology companies, creates governance risks and costs, including the potential loss of economic value for non-voting shares held by public investors.[2][3]

See alsoEdit

ReferencesEdit

  1. ^ Hefter, Michael; Philip, Ryan; Kolker, David. "Delaware Court Establishes "Taxonomy" For Controlling Stockholder Claims". Transaction Advisors. ISSN 2329-9134.
  2. ^ https://corpgov.law.harvard.edu/2019/04/03/the-perils-of-lyfts-dual-class-structure/
  3. ^ https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2954630