Controlling interest
(Redirected from
Majority interest
) | This article needs additional citations for verification. (September 2012) |
A controlling interest is an
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 also
- Consolidation (business)
- Holding company
- Minority interest
- Parent company
- Subsidiary
References
- ISSN 2329-9134. Archived from the originalon 2016-03-25. Retrieved 2015-01-16.
- ^ Governance, Harvard Law School Forum on Corporate; Regulation, Financial (3 April 2019). "The Perils of Lyft's Dual-Class Structure". corpgov.law.harvard.edu.
- SSRN 2954630– via papers.ssrn.com.
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