DEFINITION of 'Interested Shareholder'

A shareholder or association with beneficial ownership, whether direct or indirect, of enough voting stock to affect company decisions.

BREAKING DOWN 'Interested Shareholder'

The actual percentage of stock that a beneficial shareholder must own is dependent upon the state or country that the company is headquartered in. The percentage may vary substantially.

Typically, the range is around 20% of all outstanding shares.

RELATED TERMS
  1. Beneficial Owner

    A beneficial owner is the true owner of an asset or security ...
  2. Section 16

    Section 16 is a section of the Securities Exchange Act of 1934 ...
  3. Common Shareholder

    The rights of common shareholders give shareholders the ability ...
  4. Shares

    Shares are a unit of ownership of a company that may be purchased ...
  5. Proxy Materials

    Proxy materials are filed to shareholders before annual meetings ...
  6. Shareholders' Agreement

    A shareholders' agreement is an arrangement among a company's ...
Related Articles
  1. Investing

    Know your shareholder rights

    Common-stock owners have numerous privileges and should be vigilant in monitoring a company. Read on to learn what rights you have as a shareholder.
  2. Investing

    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.
  3. 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.
  4. Investing

    A Peek Into Shareholder Meetings

    Shareholder meetings can be glamorous, exciting or controversial, but not particularly revelatory.
  5. Small Business

    Whom Should Corporations Please?

    Companies balance the interests of owners, customers and employees. Find out who comes out on top.
  6. Investing

    How to use insider and institutional ownership

    Learn why insider and institution stock ownership reveal much information about the stock. Understand what to consider when making well-informed investment decisions.
  7. Investing

    When Good News Is Actually Bad News For Investors

    Learn how investors can be on the lookout for companies that spin bad news for shareholders into good news. Watch out for these types of announcements.
RELATED FAQS
  1. What can shareholders vote on?

    Understand the usual voting rights of common stock shareholders, along with the importance of shareholders exercising their ... Read Answer >>
  2. What are the advantages of ordinary shares?

    Dividends and ownership rights are two advantages of investing in ordinary shares. Read Answer >>
  3. What are the types of share capital?

    Companies obtain share capital by selling ownership shares to the public. The two types of share capital are common stock and preferred ... Read Answer >>
  4. Why would I need to know how many outstanding shares the shareholders have?

    Find out why shareholders should know how many outstanding shares have been issued by a corporation, and learn what happens ... Read Answer >>
  5. How does a merger affect the shareholders?

    Explore the impact of a merger and understand how the process affects shareholders of the newly merged firm in terms of stock ... Read Answer >>
  6. What are the advantages and disadvantages of preference shares?

    Learn about the advantages and disadvantages of preference shares for both investors and issuing companies. Read Answer >>
Trading Center