Non-Controlling Interest


DEFINITION of 'Non-Controlling Interest'

An ownership stake in a corporation where the held position gives the investor no influence on how the company is run. The majority of investor positions are deemed to be a non-controlling interest because their ownership stake is so insignificant relative to the total number of outstanding shares. For smaller companies, any position that holds less than 50% of the outstanding voting shares is deemed to be a non-controlling interest.


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BREAKING DOWN 'Non-Controlling Interest'

For the majority of publically traded companies, the number of outstanding shares is so large that a normal position cannot influence higher level activity, which is why it is deemed as a non-controlling interest. It is generally not until one control's 5-10% that they can push for a seat on the board, or enact changes at the shareholders meetings by publically lobbying for them.

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  6. Voting Shares

    Shares that give the stockholder the right to vote on matters ...
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