Controlling stake

Term meaning Controlling stake

part of the total number of shares issued by a joint-stock company, concentrated in the hands of one person and giving him the right to exercise actual control over the activities of the joint-stock company, to manage it. Theoretically, the controlling interest is at least half of all issued voting shares. In practice, with a wide distribution of shares, the possession of more than 20-30% of the shares gives their owner a controlling stake, since not all shareholders can be represented at the meeting, and they will all vote against the proposals of such an owner.

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