Majority Interest
/ˈmɑːdʒərəti ˈɪntrəst/
Definitions
- (n.) Ownership of more than half the total shares or voting power in a company or entity, conferring control over corporate decisions.
The investor holds a majority interest in the corporation, allowing them to appoint the board of directors.
- (n.) A controlling stake or dominant share in any joint venture or partnership.
The partner acquired a majority interest, thereby gaining control over the partnership’s policy decisions.
Forms
- majority interest
Related terms
See also
Commentary
In drafting agreements, specifying the percentage that constitutes a majority interest is crucial to avoid ambiguity in control rights.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.