Controlled Company

Controlled Company - A controlled company is a company where another company owns the majority of the voting shares. In other words, generally a parent corporation with enough voting stock in another company to control the other company's board of directors; therefore the parent company is in control of the other company's management, policies, decisions, and day to day operations. In order for a control company to exist, the parent company must possess at least 80% of the voting stock. The controlling company also has tax consolidation benefits like tax-free dividends.

 Controlling Interest - Controlling interest is when a shareholder or group acting together holds enough control within a specific company to enforce changes at the highest level of management. In order for these changes to be enforced, the controlling interest must have 50% of the outstanding voting shares, plus one additional voting share, although control can be gained in some instance with less shares, as not all shares hold equal voting rights when it comes to shareholder's meetings. Shake ups are often created in large companies due to the less than 50% outstanding share votes. Shareholders with as little as 5 - 10% of the company's ownership can push for a seat on the board.