Controlling (Majority) Shareholder
A controlling (majority) shareholder is an individual, entity, or group that owns more than 50% of a company’s voting shares, giving them significant influence over the company’s strategic decisions, such as electing board members, approving mergers, and setting corporate policies. Majority shareholders have the power to control the direction of the company and may act in their interests, which can impact minority shareholders.
Example
If a single investor owns 60% of a company’s shares, they are the controlling shareholder, with the ability to make key decisions and influence the company’s operations.
Key points
• A controlling shareholder owns more than 50% of a company’s voting shares.
• They have significant influence over corporate decisions, including board elections and mergers.
• Controlling shareholders can shape the company’s strategic direction.