Working Control

DEFINITION of 'Working Control'

When a minority shareholder (or shareholders) has enough voting power to influence or determine corporate policy. Working control exists particularly in corporations with widely dispersed share ownership where no shareholder has a majority interest.

BREAKING DOWN 'Working Control'

Working control exists when a minority shareholder or multiple minority shareholders unite to possess a controlling vote in a corporation. The opportunity for minority shareholders to gain this control is seen especially in corporations where there is no dominant majority (greater than 50%) shareholder. While there are no official benchmarks for defining working control, 20% ownership is often considered large enough to exhibit this level of influence.

RELATED TERMS
  1. Control

    1. The use of power to influence an outcome. For example, working ...
  2. Controlling Interest

    When one shareholder or a group acting in kind holds a high enough ...
  3. Shareholders' Agreement

    An arrangement among a company's shareholders describing how ...
  4. Voting Right

    The right of a stockholder to vote on matters of corporate policy ...
  5. Control Stock

    1. Equity shares owned by major shareholders of a publicly traded ...
  6. Shareholder Activist

    A person who attempts to use his or her rights as a shareholder ...
Related Articles
  1. Investing

    Knowing Your Rights As A Shareholder

    We delve into common stock owners' privileges and how to be vigilant in monitoring a company.
  2. Investing

    What is a Minority Interest?

    A minority interest is an ownership or equity interest of less than 50% of an enterprise.
  3. Investing

    Keeping Control of Your Business After the IPO

    Taking a company public doesn't mean founders must completely give up calling the shots. Before the IPO, consider these tactics to keep control after it.
  4. Investing

    Who is a Shareholder?

    A shareholder is a person, company or other entity that owns at least one share of a company’s stock.
  5. Investing

    What is the Shareholder Equity Ratio?

    The shareholder equity ratio shows how much money shareholders will receive if a company has to liquidate its assets.
  6. Markets

    Knowing Your Rights As A Shareholder

    Common shareholders typically enjoy six main rights.
  7. Markets

    How Your Vote Can Change Corporate Policy

    Shareholders are getting a bigger say in how companies are run. Find out how you can be heard.
  8. Managing Wealth

    Shareholders: Vote Your Proxy and Be Heard

    Voting shares, in person or via proxy ballot, is a right every shareholder should exercise. Here's why.
  9. ETFs & Mutual Funds

    Proxy Voting Gives Fund Shareholders A Say

    You have the right to take part in important company decisions - even if you cannot attend the meetings.
  10. Investing

    Proxy Season 2016: Most Wonderful Time of the Year

    Each year, public companies hold shareholder meetings where individual and institutional investors vote on the future. Here is what to watch in 2016.
RELATED FAQS
  1. How do a corporation's shareholders influence its Board of Directors?

    Find out how shareholders can influence the activity of the members of the board of directors and even change official corporate ... Read Answer >>
  2. What can shareholders vote on?

    Understand the usual voting rights of common stock shareholders, along with the importance of shareholders exercising their ... Read Answer >>
  3. What rights do all common shareholders have?

    Learn what rights all common shareholders have, and understand the remedies that can be taken if those rights are violated ... Read Answer >>
  4. How much, if any, influence do non-controlling interest shareholders have?

    Examine some of the different ways non-controlling interest shareholders can exercise influence over both public and private ... Read Answer >>
  5. What are some characteristics of ordinary shares?

    Read about some of the primary characteristics of ordinary shares, also known as common shares, including voting rights and ... Read Answer >>
  6. What is the investor rights movement?

    The investor rights movement, also called shareholder activism, refers to the efforts of shareholders of publicly traded ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center