What is a controlled company?

Controlled Companies are corporations where most voting shares hold an individual or other company. This level of possession effectively puts the holder of the majority shares in position to check the outcome of the vote in any shareholder's problem. However, the exact level of inspection is determined by the terms of participation contained in the agreement on the purchase of shares and the statutes of its own company.

There are many examples of controlled companies today. In some cases, the controlled company is structured as a holding company, while the inspection interest adheres to an attempt to take an attempt to take over the corporate raider. In other cases, the founder of the company may decide to sell less than half of the company's interest to other investors, while maintaining control of the majority share through the funds of a separate corporate structure.

Within the total value of the vote that is held, there will be other factors that determine how much company checks canMajorite holder to develop. One factor is related to what percentage of voting shares is needed to introduce sufficient support to confirm or reject the problem submitted to the shareholders. In situations where the statutes require a simple majority vote, a shareholder who has more than half of voting shares will obviously be able to determine the result. However, if the statutes stipulate that a two -thirds majority are required to confirm or reject the problem, and the holder of the majority has only a little more than half of the voting shares, it will often need additional support from other shareholders to control the result. At the same time, shareholders with fewer shares certainly need the support of the majority shareholder to achieve their goals.

The controlled company tends to look like any spanning corporation to the general public. Examples of the controlled society can be found in almost every type of industry, from retail to communication. As a continuing viable business mOdel has a long history controlled and is likely to remain viable in the foreseeable future.