Working Control

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Working control

Control of a corporation by a shareholder or shareholders having less than 51% voting interest because of the wide dispersion of share ownership.

Working Control

The state of holding a substantial minority stake in a publicly-traded company such that one does not have outright control, but is still a major player in the company's decisions. Often, an investor is considered to have working control if he/she has at least a 20% holding in the company. One has working control because the number of voting shares gives one virtual veto power over company decisions, particularly when other stockholders are closely divided. These investors must be listed on the company's financial statements.

working control

The ownership of a sufficient amount of a firm's voting stock (not necessarily more than 50%) to determine corporate policy. Compare majority stockholder.

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