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GeezerVison is showing en.wikipedia.org — Controlling interest - Wikipedia

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This article needs more citations. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.
Find sources: "Controlling interest" – news · newspapers · books · scholar · JSTOR
(September 2012) (Learn how and when to remove this message)

A controlling interest is an ownership interest in a corporation with enough voting 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. In theory, this would 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

  1. ↑ Hefter, Michael; Philip, Ryan; Kolker, David. "Delaware Court Establishes "Taxonomy" For Controlling Stockholder Claims". Transaction Advisors. ISSN 2329-9134. Archived from the original on 2016-03-25. Retrieved 2015-01-16.
  2. ↑ Governance, Harvard Law School Forum on Corporate; Regulation, Financial (3 April 2019). "The Perils of Lyft's Dual-Class Structure". corpgov.law.harvard.edu.
  3. ↑ Bebchuk, Lucian A.; Kastiel, Kobi (2017-04-18). "The Untenable Case for Perpetual Dual-Class Stock". SSRN Electronic Journal. doi:10.2139/ssrn.2954630. SSRN 2954630.
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