Working Control

AAA

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.

INVESTOPEDIA EXPLAINS '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. Shareholder

    Any person, company or other institution that owns at least one ...
  2. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding ...
  3. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
  4. Minority Interest

    1. A significant but non-controlling ownership of less than 5 ...
  5. Controlling Interest

    When one shareholder or a group acting in kind holds a high enough ...
  6. Registered Holder

    Shareholders who hold their shares directly with a company.
Related Articles
  1. Activist Investors: A Good Or Bad Thing?
    Options & Futures

    Activist Investors: A Good Or Bad Thing?

  2. Could Your Company Be A Target For Activist ...
    Mutual Funds & ETFs

    Could Your Company Be A Target For Activist ...

  3. How do proxy fights work?
    Investing

    How do proxy fights work?

  4. Starbucks As An Example Of The Value ...
    Investing News

    Starbucks As An Example Of The Value ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center