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Controlling interest

A shareholder has controlling interest in a business when he or she owns more than 50% of the company’s voting shares, giving him or her the deciding voice in shareholder meetings and control over company direction.

Voting shares allow shareholders to participate, speak and vote in shareholder meetings. Even if another shareholder owns more of a company’s authorized, issued and outstanding shares and has a bigger equity stake in the business, he or she cannot influence management decisions or company direction if those shares are not voting shares.

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