Controlling interest

A controlling interest is having a big interest or ownership in a company or corporation. It usually includes enough voting power. Having the majority of voting shares (usually over 50%) means having a controlling interest.[1]

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]

References

  1. "Definition of controlling interest | Dictionary.com". www.dictionary.com. Retrieved 2020-10-08.
  2. Governance, Harvard Law School Forum on Corporate; Regulation, Financial. "The Perils of Lyft's Dual-Class Structure". corpgov.law.harvard.edu.
  3. Bebchuk, Lucian A.; Kastiel, Kobi (April 18, 2017). "The Untenable Case for Perpetual Dual-Class Stock" – via papers.ssrn.com.