Majority Shareholder

Business, Legal & Accounting Glossary

Definition: Majority Shareholder

Majority Shareholder

Quick Summary of Majority Shareholder

A single shareholder who controls more than half of a corporation’s outstanding shares, or sometimes, one of a small group of shareholders who collectively control more than half of a corporation’s outstanding shares.

Full Definition of Majority Shareholder

In corporate governance, a majority shareholder is a shareholder that has a majority of the shares of a company.

The majority shareholder exerts complete control over the company by being able to replace the board of directors and the management. A simple majority of 50% ownership usually confers majority shareholder status. A majority shareholder can be a single individual, most often in the case of a company founder. The majority shareholder can also be another corporation. An alternative means of retaining the complete control of a majority shareholder is through the use of voting rights. In this scenario, not all shares have equal voting rights, allowing for the possibility that one person can have the same control a majority shareholder would, through ownership of the majority of the voting rights. Public companies seldom have one majority shareholder, but the situation is quite common with private companies.

Related Phrases

direct investment
minority ownership
drag-along right

Cite Term

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Modern Language Association (MLA):
Majority Shareholder. Payroll & Accounting Heaven Ltd.
June 27, 2022
Chicago Manual of Style (CMS):
Majority Shareholder. Payroll & Accounting Heaven Ltd. (accessed: June 27, 2022).
American Psychological Association (APA):
Majority Shareholder. Retrieved June 27, 2022
, from website:

Definition Sources

Definitions for Majority Shareholder are sourced/syndicated and enhanced from:

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

This glossary post was last updated: 6th November, 2021 | 4 Views.