Minority Interest

Minority Interest

Minority Interest

Minority (or non-controlling) interests are the non-majority shareholders of a company. Passive minorities typically own less than 20% of the voting rights and will conform with board and majority vote decisions – although activist minorities can and do agitate for change. Similarly, institutional shareholders holding more than 5% of a company’s votes will often push for board representation and will demand changes to be enacted to improve performance and returns.

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