minority interest

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Minority interest

An outside ownership interest in a subsidiary that is consolidated with the parent for financial reporting purposes.

Minority Interest

1. A percentage of ownership in a company that is significant but does not give the owner the ability to control the company. In accounting, one includes only the dividends from a minority interest on a balance sheet, unless the owner has enough ownership to exert influence (but not outright control) over the company's direction. In that case, one includes both dividends and ordinary income on the balance sheet.

2. A liability on a parent company's balance sheet indicating the amount of a subsidiary that the parent company does not own. For example, if a parent company owns 95% of a subsidiary and the remaining percentage is publicly traded, the dollar amount of that 5% is recorded as a liability on the balance sheet.

minority interest

1. In accounting, the ownership by the parent company of less than 100% of an affiliated firm.
2. A proportional ownership of a firm that is insufficient to constitute control. Generally, minority interest is viewed as ownership of less than 50% of the voting shares.

Minority interest.

All shareholders whose combined shares represent less than half of the total outstanding shares issued by a corporation have a minority interest in that corporation.

In fact, in many cases, the combined holdings of the minority shareholders are considerably less than half of the total shares.

In another example, in a partnership, any partner who has a smaller percentage than another partner is said to have a minority interest. Under normal circumstances, it is difficult for those with a minority interest to have any real influence on corporate policy.

minority interest

that part of a subsidiary company's listed SHARE CAPITAL which is not owned by the HOLDING COMPANY. Where the holding company owns more than 50% of the shares of a subsidiary company then it is able to control that company, but where it owns less than 100% of the shares then the minority interest of other shareholders in the subsidiary company must be recognized. In compiling CONSOLIDATED ACCOUNTS the claims of minority interests in certain group assets located in subsidiary companies must be recognized, and their entitlement to a share in the profits of subsidiary companies must be allowed for. See PREACQUISITION PROFITS.

minority interest

that part of a subsidiary company's issued SHARE CAPITAL that is not owned by the HOLDING COMPANY. Where the holding company owns more than 50% of the shares of a subsidiary company, then it is able to control that company, but where it owns less than 100% of the shares, then the minority interest of other shareholders in the subsidiary company must be recognized, in particular their entitlements to a share in the profits of subsidiary companies.
References in periodicals archive ?
Perth, Australia (ABN Newswire) - MMJ (ASX:MMJ) (FRA:2P9) (OTCMKTS:MMJJF) owns a portfolio of minority investments and aims to invest across the full range of emerging cannabis-related sectors including healthcare, technology, infrastructure, logistics, processing, cultivation, equipment and retail.
and Landmark Partners, LLC affiliates have made strategic minority investments in Siris, the company said.
(NYSE: CTL) (CenturyLink), USD 100 million of cash and minority investments in complementary businesses and assets of USD 25 million in exchange for Globalstar common stock valued at approximately USD 1.65 billion, subject to adjustments, the company said.
(NYSE: CTL), USD 100m of cash and minority investments in complementary businesses and USD 25m in exchange for assets that will be combined with Globalstar, the company said.
pursuant to which the following assets will be combined with Globalstar: metro fiber provider FiberLight, LLC , 15.5 million shares of common stock of CenturyLink (CTL), $100 million of cash and minority investments in complementary businesses and assets of $25 million in exchange for Globalstar common stock valued at approximately $1.65 billion, subject to adjustments.
The session will address the issues and trends relating to acquisitions, minority investments, joint ventures and spin-off transactions in the alternative asset management industry.
BC Partners is buying Migros with minority investments from DeA Capital, controlled by De Agostini, and Turkven Private Equity.
Golden will advise on financings and transaction execution, including mergers and acquisitions, joint ventures, minority investments, divestitures, ESOPs, and distressed sales and financings from strategic and financial investors.
"We're not only seeing financing alternatives by way of capital increases, but there are also cases of companies that have a great opportunity to get out of minority investments and reorient their resources towards others that are more closely related to their principal business," says Javier Contreras, chief of finance at stock brokerage Santander Investment in Santiago.
Also included is AIG's prorated share of losses from its majority investment in Transatlantic Holdings Inc.; participation in Lloyd's Syndicate 1414 (Ascot); and the company's minority investments in Allied World Assurance Holdings Ltd., IPC Holdings Ltd.
Willing to make both control and minority investments and to partner with existing management or bring in outside management.
With minority investments, traditional businesses potentially give up significant strategic and day-to-day management control of the entity, building out the e-commerce infrastructure.

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