Controlling Interest

Controlling Interest Holding a sufficiently large number of shares in a company so as t be able to control its policies. Ownership of 51% of the equity shares in a company, or even a smaller number if the shareholding is widely dispersed among people who do not bother to vote (usually small shareholders), can give a person or a group the voting power to influence a company’s decision. Controlling interest can be gained by slow ACCUMULATION of shares bought in the open market or by acquisition of one of the major shareholders’ interest in the company. For legal purposes, a holding of more than 20% of the voting shares of a company by a director and his family and associates, counts as a controlling interest.

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