Minority Interest
/ˈmaɪnərɪti ˈɪntrɪst/
Definitions
- (n.) The ownership stake held by minority shareholders in a corporation, representing less than 50% of voting shares and typically lacking control over corporate decisions.
The financial report disclosed the minority interest held by outside investors in the subsidiary.
- (n.) In accounting, the portion of equity (net assets) in a subsidiary not attributable to the parent company, shown separately in consolidated financial statements.
The consolidated balance sheet included minority interest to reflect ownership by outside parties.
Forms
- minority interest
- minority interests
Related terms
See also
Commentary
Use 'minority interest' carefully to distinguish between legal ownership and accounting representation in consolidated statements.
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.