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Simple English definitions for legal terms
controlling interest
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A quick definition of controlling interest:
Controlling interest means having enough ownership of a company's stock to control its policies and management. This usually means owning more than 50% of the company. It's like being the boss of the company.
A more thorough explanation:
Definition: Controlling interest refers to sufficient ownership of stock in a company to control policy and management, especially a greater-than-50% ownership interest in an enterprise.
Example: If a person or entity owns more than 50% of the shares of a company, they have a controlling interest in that company. This means they have the power to make decisions about the company's policies and management.
This definition is important in the world of business and finance because it determines who has the power to make decisions about a company. If someone has a controlling interest, they can make decisions that affect the company's future, such as who to hire or fire, what products to produce, and how to allocate resources. Understanding controlling interest is crucial for investors and shareholders who want to have a say in how a company is run.