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

This definition of this term varies according the incorporation laws of the state or country where the company is headquartered. The percentage may vary substantially.

Typically, the range is around 20% of all outstanding shares. Interested shareholder is a key concept because once the percentage level is reached, and there is no majority shareholder, control of the business is at stake.