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.

  1. Control

    1. The use of power to influence an outcome. For example, working ...
  2. Common Shareholder

    The rights of common shareholders give them the ability to influence ...
  3. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding ...
  4. Minority Interest

    1. A significant but non-controlling ownership of less than 5 ...
  5. Control Stock

    1. Equity shares owned by major shareholders of a publicly traded ...
  6. Freeze Out

    An action taken by a firm's majority shareholders that pressures ...
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