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]
^Hefter, Michael; Philip, Ryan; Kolker, David. . Transaction Advisors. ISSN 2329-9134. Archived from the original on 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.
^Bebchuk, Lucian A.; Kastiel, Kobi (April 18, 2017). "The Untenable Case for Perpetual Dual-Class Stock". doi:10.2139/ssrn.2954630. S2CID 157125087. SSRN 2954630 – via papers.ssrn.com.
This accounting-related article is a stub. You can help Wikipedia by expanding it.
controlling, interest, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, sept. This article needs additional citations for verification 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 template message 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 also editConsolidation business Holding company Minority interest Parent company SubsidiaryReferences edit 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 Governance Harvard Law School Forum on Corporate Regulation Financial 3 April 2019 The Perils of Lyft s Dual Class Structure corpgov law harvard edu Bebchuk Lucian A Kastiel Kobi April 18 2017 The Untenable Case for Perpetual Dual Class Stock doi 10 2139 ssrn 2954630 S2CID 157125087 SSRN 2954630 via papers ssrn com nbsp This accounting related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Controlling interest amp oldid 1201838461, wikipedia, wiki, book, books, library,
