Define: Controlling Interest

UK Accounting Glossary

Definition: Controlling Interest



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Full Definition of Controlling Interest


Controlling interest is simply an ownership status where a corporation or an individual owns fifty per cent or more of a company’s voting shares. One of the ways in which controlling interest may be achieved is by paying a control premium, which in effect grants enough ownership to set policies, direct operations, and makes a multitude of other controlling interest decisions for a business. Controlling interest is also often attained by way of initiating mergers, such as acquisitions and buyouts. Undervalued companies are often sought out for the purpose of consuming enough shares to secure controlling interest. Controlling interest may also be gained by a much smaller interest in a company, owned individually or by a group in combination. This type of standing may result in a controlling interest if all other company shares are widely dispersed and not actively voted.


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Definition Sources


Definitions for Controlling Interest are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.